THE RESEARCH OF CAR INSURANCE PRICING BASED ON TWEEDIE-GAM

10.6704/JMSSD.2016.13.1.13

Zhong-Yi Liu；Zhen-Long Chen

Generalized Linear Models ； Car Insurance Pricing ； Tweedie Distribution ； Generalized Additive Models

管理科學與統計決策

13卷1期（2016 / 03 / 01）

13 - 24

英文

Generalized linear models assume that the influence of the independent variables on the response variable function is linear as a mainstream approach to the research of car insurance pricing. But in the actual situation, a number of factors that affect the frequency and severity of claims are not only a linear form. Simply using linear estimation will cause some variables insignificant, thus it is necessary to introduce generalized additive model. Based on a real dataset of automobile insurance loss, this thesis discussed car insurance pricing with different factors by using GAM-Tweedie model. It showed that the generalized additive GAM-Tweedie model can better explain the impacts on claims than the linear model.

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