Home
>
Explore Content
>
All Issues
>
Article View
On Enlarging the Insured Rate of Physical Damage Coverage by Analysing the Characteristics of Customers
Journal of Insurance and Finance
2010, 21(2),
pp.37-72
Publisher : Korea Insurance Research Institute
Research Area : Business Management
Publisher : Korea Insurance Research Institute
Research Area : Business Management
-
As the growth of the number of registered vehicles has been stagnant, so has auto insurance. The number of registered vehicles is an exogenous variable that cannot be controlled by the insurer. Thus, the auto insurer can enlarge total written premiums and market size by introducing some new coverages or increasing the insured rate of existing coverages. Compared to other types of coverages, the insured rate of the collision coverage is still low but the premium size per vehicle is relatively large. Therefore, under current market condition of the auto insurance, increasing the insured rate of collision coverage would be crucial to enlarge total auto insurance market. In this paper, we analyze characteristics of the auto insured who do not purchase collision coverage by utilizing a generalized additive partial linear model. We also suggest a couple of ways to increase the insured rate of collision coverage.
425
Viewed
Print this page
Download PDF