A DEA Analysis of Risk, Cost, and Revenues in Insurance
Insurance companies have to take risk and cost into account when pricing car insurance policies that cover the risk of private use of cars. In this paper we use data from 80 000 car insurance policies in order to assess, once risk and cost have been taken into account, the combinations of risk that...
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| Veröffentlicht in: | The Journal of the Operational Research Society 2009-11, Vol.60 (11), p.1483-1494 |
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| container_title | The Journal of the Operational Research Society |
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| creator | Segovia-Gonzalez, M. M. Contreras, I. Mar-Molinero, C. |
| description | Insurance companies have to take risk and cost into account when pricing car insurance policies that cover the risk of private use of cars. In this paper we use data from 80 000 car insurance policies in order to assess, once risk and cost have been taken into account, the combinations of risk that generate the highest returns for the company under existing pricing practices. We use data envelopment analysis (DEA) and frame the study within an analysis of experiments context. The results of DEA are interpreted in a multivariate statistical analysis context using factor analysis, and property fitting techniques. The impact of risk factors in the efficiency is explored by means of regression analysis with dummy variables. There are consequences for the pricing policy of the company. |
| doi_str_mv | 10.1057/jors.2009.32 |
| format | Article |
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M.</creatorcontrib><creatorcontrib>Contreras, I.</creatorcontrib><creatorcontrib>Mar-Molinero, C.</creatorcontrib><title>A DEA Analysis of Risk, Cost, and Revenues in Insurance</title><title>The Journal of the Operational Research Society</title><addtitle>J Oper Res Soc</addtitle><description>Insurance companies have to take risk and cost into account when pricing car insurance policies that cover the risk of private use of cars. In this paper we use data from 80 000 car insurance policies in order to assess, once risk and cost have been taken into account, the combinations of risk that generate the highest returns for the company under existing pricing practices. We use data envelopment analysis (DEA) and frame the study within an analysis of experiments context. The results of DEA are interpreted in a multivariate statistical analysis context using factor analysis, and property fitting techniques. 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There are consequences for the pricing policy of the company.</description><subject>Accidents</subject><subject>Age</subject><subject>Analysis</subject><subject>Automobile insurance</subject><subject>Automobiles</subject><subject>Business and Management</subject><subject>Consumer goods industries</subject><subject>Contracts</subject><subject>Data envelopment analysis</subject><subject>Decision making</subject><subject>Design of experiments</subject><subject>Efficiency</subject><subject>Efficiency metrics</subject><subject>Gender</subject><subject>Insurance companies</subject><subject>Insurance industry</subject><subject>Insurance policies</subject><subject>Insurance premiums</subject><subject>Life insurance</subject><subject>Management</subject><subject>Market segments</subject><subject>Operations research</subject><subject>Operations Research/Decision Theory</subject><subject>Predisposing factors</subject><subject>Pricing policies</subject><subject>Principal components analysis</subject><subject>Risk</subject><subject>Risk factors</subject><subject>Special Issue Paper</subject><subject>Studies</subject><subject>Vehicles</subject><subject>Women</subject><issn>0160-5682</issn><issn>1476-9360</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2009</creationdate><recordtype>article</recordtype><sourceid>8G5</sourceid><sourceid>BENPR</sourceid><sourceid>GUQSH</sourceid><sourceid>M2O</sourceid><recordid>eNp10MFLwzAUBvAgCs7pzasQPHha50vSJOuxzKmDgTD0HNI2Ga0z1bxO3H9vR0VPnt7lx_c-PkIuGUwZSH3btBGnHCCbCn5ERizVKsmEgmMyAqYgkWrGT8kZYgM9ApaNiM7p3SKnebDbPdZIW0_XNb5O6LzFbkJtqOjafbqwc0jrQJcBd9GG0p2TE2-36C5-7pi83C-e54_J6ulhOc9XSZly3iVKWVlZa7X2kkEFUjBeVbryVsmysLLw2cyVDrxKq0Jbn5ZeFzPQnqtU2iITY3I95L7H9qMv0Zmm3cW-LRoumJhJENCjmwFt7NaZOpRt6NxXt7E7RGNyzoBzAZnu4WSAZWwRo_PmPdZvNu4NA3OY0BwmNIcJjeA9TwaOPQsbF_-e_-OvBt9g18bf7BR4JjUD8Q1MLnsH</recordid><startdate>20091101</startdate><enddate>20091101</enddate><creator>Segovia-Gonzalez, M. 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| subjects | Accidents Age Analysis Automobile insurance Automobiles Business and Management Consumer goods industries Contracts Data envelopment analysis Decision making Design of experiments Efficiency Efficiency metrics Gender Insurance companies Insurance industry Insurance policies Insurance premiums Life insurance Management Market segments Operations research Operations Research/Decision Theory Predisposing factors Pricing policies Principal components analysis Risk Risk factors Special Issue Paper Studies Vehicles Women |
| title | A DEA Analysis of Risk, Cost, and Revenues in Insurance |
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