Abstract

SEGOVIA-VARGAS, María Jesús; CAMACHO-MINANO, María-del-Mar; PASCUAL-EZAMA, David  and  RODRIGUEZ-PINERO, Piedad Tolmos. ANALYSIS OF RISK FACTORS IN CAR INSURANCE THROUGH STRUCTURAL EQUATIONS. Innovar [online]. 2015, vol.25, n.spe, pp.121-129. ISSN 0121-5051.  https://doi.org/10.15446/innovar.v25n1spe.53369.

Risk management, associated to car insurance, is a crucial issue currently faced by both actuaries and field professionals. It is essential to adequately choose the risk factors to assign the payment rates to policyholders according to the associated risks. Therefore, the purpose of this work is to demonstrate, in an empirical way, the validity of using "bonus malus" (BM) levels to classify policyholders correctly through two models of structural equations. The analysis of a sample of 4,365 Spanish car insurance policies described through 11 risk factors shows that the variable BM contributes to improving the explaining capacity of the model, though not in a significant way.

Keywords : Risk factors; car insurance; bonus-malus system; structural equations.

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