The a priori risk classification with spatial autocorrelation in automobile insurance

Kamil Gala
Additional contact information
Kamil Gala: Ubezpieczeniowy Fundusz Gwarancyjny

Collegium of Economic Analysis Annals, 2018, issue 51, 147-168

Abstract: The subject of this paper is to describe a priori risk classification models in automobile insurance which take into consideration the address of the insured. The extension of the generalized linear model with the multi-level factor to account for the correlation between the levels is presented. The analysis of empirical data from the Polish insurance indicates both significant spatial heterogeneity and spatial autocorrelation. Moreover, the inclusion of spatial variables in the risk classification models can improve their accuracy and effectiveness.

Keywords: risk operators; risk-switching models; ruin probabilities; upper bounds; Markov chains (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://rocznikikae.sgh.waw.pl/p/roczniki_kae_z51_07.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sgh:annals:i:51:y:2018:p:147-168

Access Statistics for this article

Collegium of Economic Analysis Annals is currently edited by Joanna Plebaniak, Beata Czarnacka-Chrobot

More articles in Collegium of Economic Analysis Annals from Warsaw School of Economics, Collegium of Economic Analysis Contact information at EDIRC.
Bibliographic data for series maintained by Michał Bernardelli ().