Profit analysis and simulation in motor insurance

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This study suggests the use of profit analysis and simulation for assessing the price of motor insurance. Utilization of profit analysis and simulation on insurance pricing has several advantages; they can be applied to identify the distributions that agree or disagree with the actual experience, to predict the performance of pricing models under alternative scenarios, and to assess the performance of pricing models by allowing random variabilities in the underlying distribution of such models.

Original languageEnglish
Pages (from-to)45-57
Number of pages13
JournalInternational Research Journal of Finance and Economics
Volume30
Publication statusPublished - Aug 2009

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Simulation
Profit
Insurance
Scenarios
Insurance pricing

Keywords

  • Claim frequency
  • Claim severity
  • Motor insurance
  • Profit analysis
  • Simulation

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

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abstract = "This study suggests the use of profit analysis and simulation for assessing the price of motor insurance. Utilization of profit analysis and simulation on insurance pricing has several advantages; they can be applied to identify the distributions that agree or disagree with the actual experience, to predict the performance of pricing models under alternative scenarios, and to assess the performance of pricing models by allowing random variabilities in the underlying distribution of such models.",
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