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@article{ART002112259},
author={Jang Bong-Gyu and Changhui Choi},
title={Generating an Optimal Auto Insurance Ratewith the Consideration of Population Change},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2016},
volume={27},
number={2},
pages={81-109},
doi={10.23842/jif.2016.27.2.003}

TY - JOUR
AU - Jang Bong-Gyu
AU - Changhui Choi
TI - Generating an Optimal Auto Insurance Ratewith the Consideration of Population Change
JO - Journal of Insurance and Finance
PY - 2016
VL - 27
IS - 2
PB - Korea Insurance Research Institute
SP - 81
EP - 109
SN - 2384-3209
AB - Currently, Korean auto insurers have to cope with the world-fastest population ageing under the environments that force them to use premiums that are below break-even points. Unlike other property-casualty insurance lines, Korean auto insurers cannot apply break-even insurance premiums, calculated with the consideration of trend, due to financial authorities' interference and severe market competition. Therefore, it is practically impossible for auto insurers to apply break-even premiums with the consideration of trends in loss ratios of age-groups. This research was conducted to show that auto insurers can improve their profit by using optimal age-group rates, which are calculated with the consideration of population change. To pursue this purpose, we demonstrate that age-groups of auto insurance have distinct loss-ratio trends. Then we explain how insurers can maximize(minimize) their profits(losses) by taking these trends into consideration in calculating age-groups' auto insurance rates.
KW - auto insurance premium;population ageing;optimization
DO - 10.23842/jif.2016.27.2.003
ER -

Jang Bong-Gyu and Changhui Choi. (2016). Generating an Optimal Auto Insurance Ratewith the Consideration of Population Change. Journal of Insurance and Finance, 27(2), 81-109.

Jang Bong-Gyu and Changhui Choi. 2016, "Generating an Optimal Auto Insurance Ratewith the Consideration of Population Change", Journal of Insurance and Finance, vol.27, no.2 pp.81-109. Available from: doi:10.23842/jif.2016.27.2.003

Jang Bong-Gyu, Changhui Choi "Generating an Optimal Auto Insurance Ratewith the Consideration of Population Change" Journal of Insurance and Finance 27.2 pp.81-109 (2016) : 81.

Jang Bong-Gyu, Changhui Choi. Generating an Optimal Auto Insurance Ratewith the Consideration of Population Change. 2016; 27(2), 81-109. Available from: doi:10.23842/jif.2016.27.2.003

Jang Bong-Gyu and Changhui Choi. "Generating an Optimal Auto Insurance Ratewith the Consideration of Population Change" Journal of Insurance and Finance 27, no.2 (2016) : 81-109.doi: 10.23842/jif.2016.27.2.003

Jang Bong-Gyu; Changhui Choi. Generating an Optimal Auto Insurance Ratewith the Consideration of Population Change. Journal of Insurance and Finance, 27(2), 81-109. doi: 10.23842/jif.2016.27.2.003

Jang Bong-Gyu; Changhui Choi. Generating an Optimal Auto Insurance Ratewith the Consideration of Population Change. Journal of Insurance and Finance. 2016; 27(2) 81-109. doi: 10.23842/jif.2016.27.2.003

Jang Bong-Gyu, Changhui Choi. Generating an Optimal Auto Insurance Ratewith the Consideration of Population Change. 2016; 27(2), 81-109. Available from: doi:10.23842/jif.2016.27.2.003

Jang Bong-Gyu and Changhui Choi. "Generating an Optimal Auto Insurance Ratewith the Consideration of Population Change" Journal of Insurance and Finance 27, no.2 (2016) : 81-109.doi: 10.23842/jif.2016.27.2.003