Artikel

On the validation of claims with excess zeros in liability insurance: A comparative study

In this study, we consider the problem of zero claims in a liability insurance portfolio and compare the predictability of three models. We use French motor third party liability (MTPL) insurance data, which has been used for a pricing game, and show that how the type of coverage and policyholders' willingness to subscribe to insurance pricing, based on telematics data, affects their driving behaviour and hence their claims. Using our validation set, we then predict the number of zero claims. Our results show that although a zero-inflated Poisson (ZIP) model performs better than a Poisson regression, it can even be outperformed by logistic regression.

Language
Englisch

Bibliographic citation
Journal: Risks ; ISSN: 2227-9091 ; Volume: 7 ; Year: 2019 ; Issue: 3 ; Pages: 1-17 ; Basel: MDPI

Classification
Wirtschaft
Subject
telematics
generalised linear modelling
validation
zero-inflated poisson model

Event
Geistige Schöpfung
(who)
Qazvini, Marjan
Event
Veröffentlichung
(who)
MDPI
(where)
Basel
(when)
2019

DOI
doi:10.3390/risks7030071
Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Qazvini, Marjan
  • MDPI

Time of origin

  • 2019

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