On the Validation of Claims with Excess Zeros in Liability Insurance: A Comparative Study
In this study, we consider the problem of zero claims in a liability insurance portfolio and compare the predictability of three models. We use French motor third party liability (MTPL) insurance data, which has been used for a pricing game, and show that how the type of coverage and policyholders&a...
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MDPI AG
2019-06-01
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| Series: | Risks |
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| Online Access: | https://www.mdpi.com/2227-9091/7/3/71 |
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doaj-a4680d7f200e4e8592b609ff9bbfeea62020-11-25T00:29:17ZengMDPI AGRisks2227-90912019-06-01737110.3390/risks7030071risks7030071On the Validation of Claims with Excess Zeros in Liability Insurance: A Comparative StudyMarjan Qazvini0Department of Actuarial Mathematics and Statistics, School of Mathematical and Computer Sciences, Heriot-Watt University Malaysia, 62200 Putrajaya, Wilayah Persekutuan Putrajaya, MalaysiaIn this study, we consider the problem of zero claims in a liability insurance portfolio and compare the predictability of three models. We use French motor third party liability (MTPL) insurance data, which has been used for a pricing game, and show that how the type of coverage and policyholders’ willingness to subscribe to insurance pricing, based on telematics data, affects their driving behaviour and hence their claims. Using our validation set, we then predict the number of zero claims. Our results show that although a zero-inflated Poisson (ZIP) model performs better than a Poisson regression, it can even be outperformed by logistic regression.https://www.mdpi.com/2227-9091/7/3/71validationgeneralised linear modellingzero-inflated poisson modeltelematics |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Marjan Qazvini |
| spellingShingle |
Marjan Qazvini On the Validation of Claims with Excess Zeros in Liability Insurance: A Comparative Study Risks validation generalised linear modelling zero-inflated poisson model telematics |
| author_facet |
Marjan Qazvini |
| author_sort |
Marjan Qazvini |
| title |
On the Validation of Claims with Excess Zeros in Liability Insurance: A Comparative Study |
| title_short |
On the Validation of Claims with Excess Zeros in Liability Insurance: A Comparative Study |
| title_full |
On the Validation of Claims with Excess Zeros in Liability Insurance: A Comparative Study |
| title_fullStr |
On the Validation of Claims with Excess Zeros in Liability Insurance: A Comparative Study |
| title_full_unstemmed |
On the Validation of Claims with Excess Zeros in Liability Insurance: A Comparative Study |
| title_sort |
on the validation of claims with excess zeros in liability insurance: a comparative study |
| publisher |
MDPI AG |
| series |
Risks |
| issn |
2227-9091 |
| publishDate |
2019-06-01 |
| description |
In this study, we consider the problem of zero claims in a liability insurance portfolio and compare the predictability of three models. We use French motor third party liability (MTPL) insurance data, which has been used for a pricing game, and show that how the type of coverage and policyholders’ willingness to subscribe to insurance pricing, based on telematics data, affects their driving behaviour and hence their claims. Using our validation set, we then predict the number of zero claims. Our results show that although a zero-inflated Poisson (ZIP) model performs better than a Poisson regression, it can even be outperformed by logistic regression. |
| topic |
validation generalised linear modelling zero-inflated poisson model telematics |
| url |
https://www.mdpi.com/2227-9091/7/3/71 |
| work_keys_str_mv |
AT marjanqazvini onthevalidationofclaimswithexcesszerosinliabilityinsuranceacomparativestudy |
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