A fuzzy knowledge-based system for premium rating of workers' compensation insurance for building projects

Kamardeen Imriyas, Low Sui Pheng and Evelyn Ai-Lin Teo

Construction Management and Economics, 2007, vol. 25, issue 11, 1177-1195

Abstract: Occupational injuries and fatalities are rampant in construction. The significance of the workers' compensation insurance (WCI) is immeasurable in safeguarding the interests of construction workers and contractors. From the insurers' perspective, the commitment under this insurance is extremely broad; there are no exclusions and a maximum limit on their liability. Thus, insurers must accomplish rigorous risk and market assessments to decide optimal premiums for construction projects. The conventional experience rating approach of premium rating has been proven ineffective for construction applications. Based on the findings of a literature review and an interview questionnaire survey, a new WCI premium rating model was developed for building projects. A hybrid of interviews and past workers' compensation claims data analysis was adopted to develop the conceptual model of a fuzzy knowledge-based system (KBS) to automate the proposed model. It was then prototyped, and verified with Turing tests. The proposed model and its fuzzy KBS advocate real time structured assessments of project hazards, safety, market condition and insurers' internal factors for premium rating. They also establish an effective risk control strategy via a well-structured incentive system for contractors and clients. Their implementation in the general insurance industry can facilitate accident control in the construction industry, thereby minimizing insurers' financial risks.

Keywords: Occupational health and safety; insurance; fuzzy logic; knowledge-based system (search for similar items in EconPapers)
Date: 2007
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/01446190701398462 (text/html)
Access to full text is restricted to subscribers.

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:taf:conmgt:v:25:y:2007:i:11:p:1177-1195

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RCME20

DOI: 10.1080/01446190701398462

Access Statistics for this article

Construction Management and Economics is currently edited by Will Hughes

More articles in Construction Management and Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().