The Econometrics of Risk Classification in Insurance
β Scribed by Gourieroux, C.
- Book ID
- 110266847
- Publisher
- Springer
- Year
- 1999
- Tongue
- English
- Weight
- 115 KB
- Volume
- 24
- Category
- Article
- ISSN
- 1573-6954
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As is well known, nearly every country in the world will soon be facing very serious financial challenges in order to maintain the historically increasingly generous level of social insurance benefits (in the case of OECD countries), or to establish or expand nonexistent or minimalist social securit
## Abstract This paper considers the problem of predicting claim costs in the automobile insurance industry. The first stage involves classifying policy holders according to their perceived risk, followed by modelling the claim costs within each risk group. Two methods are compared for the risk cla