Economic indicators for automobile claim frequencies

  • Eva Boj Department of Economic, Financial and Actuarial Mathematics, University of Barcelona
  • Anna Castañer Department of Economic, Financial and Actuarial Mathematics, University of Barcelona
  • M. Mercè Claramunt Department of Economic, Financial and Actuarial Mathematics, University of Barcelona
  • Teresa Costa Department of Economic, Financial and Actuarial Mathematics, University of Barcelona
  • Oriol Roch Department of Economic, Financial and Actuarial Mathematics, University of Barcelona

Abstract

This article examines the relationship between observed claim frequencies in the automobile insurance line and the evolution of selected economic magnitudes. From a variety of economic variables, we aim to identify the main factors affecting claim frequencies, while controlling for other legislative and demographic factors. Through a dynamic regression model, the analysis is conducted for three different categories of vehicles and for a variety of coverages. A comprehensive dataset from the main Spanish insurance companies is used to calibrate the model. The evidence might assist companies to improve ratemaking.
Keywords Categories of vehicles, dynamic regression, external predictors, motor insurance, time series
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How to Cite
Boj, E., Castañer, A., Claramunt, M., Costa, T., & Roch, O. (2019). Economic indicators for automobile claim frequencies. Estudios de Economía, 46(2), 245-271. Retrieved from https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/55275/58219
Section
Articles
Published
2019-11-26