Difference-in-Difference models to estimate causal effects on auto insurers behavior

Catalina Bolancé (), Montserrat Guillen (), Ana M. Pérez-Marín () and Anna-Patrícia Orteu ()
Additional contact information
Catalina Bolancé: Department of Econometrics Riskcenter-IREA, Universitat de Barcelona, Spain.
Montserrat Guillen: Department of Econometrics Riskcenter-IREA, Universitat de Barcelona, Spain.
Ana M. Pérez-Marín: Department of Econometrics Riskcenter-IREA, Universitat de Barcelona, Spain.
Anna-Patrícia Orteu: Department of Econometrics Riskcenter-IREA, Universitat de Barcelona, Spain.

No 202411, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics

Abstract: The Difference-in-Difference (DiD) method is useful to test if an event has effects in a given outcome using non-experimental data. Based on DiD method, we propose alternative panel models to estimate the causal effects of the traffic accidents on driving behavior patterns: the total annual driving distance in km, the percent of km circulated above the speed limits, in urban areas and at night. We use a data set provided by an ”insurtech” company that uses car sensors to measure driving data over a period of three years. The estimation results show as the causal effects of accidents are different if we consider frequency of accidents, type of damages and whose fault is the accident. Furthermore, different profiles of policyholders in function of drivers and cars characteristics are associated with specific causal effects.

Keywords: Telematics; average treatment effect; panel data; damages, fault; drivers heterogeneity. JEL classification: C21, C55, G22. (search for similar items in EconPapers)
Pages: 32 pages
Date: 2024-02, Revised 2024-02
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ub.edu/irea/working_papers/2024/202411.pdf (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:ira:wpaper:202411

Access Statistics for this paper

More papers in IREA Working Papers from University of Barcelona, Research Institute of Applied Economics Contact information at EDIRC.
Bibliographic data for series maintained by Alicia García ().