Automobile Insurance Research Articles

Quantifying the Impact of Risk Factors on Direct Compensation Property Damage in Canadian Automobile Insurance

This study presents a statistical analysis assessing the impact of various risk factors on direct compensation property damage (DCPD) claims in private passenger vehicle accidents. Using automobile insurance data in Ontario, Canada for the decade years period between 2003 and 2012, a statistical model of property damage was explored via a generalized linear binary logit mixed model and considered the imbalance between the classes of insureds. The results indicate that several risk factors have a significant impact on the likelihood of DCPD claims, including usage, training, outstanding loss, and incurred loss. The effects of these risk factors were observed under the weights — the number of trials used to generate each success proportion — in the different classes of insureds. The generalized linear mixed models (GLMMs) analysis provides a powerful tool for quantifying the impact of risk factors on binary outcomes, which are called DCPD claims and property damage (PD) claims covered by third-party liability (TPL) insurance. These models can also inform insurance underwriting and policy design, focusing on identifying the most significant risk factors. The performance metrics calculated by considering the class imbalance in binary outcomes verify the resulting model’s ability to accurately predict classes. The F1 score, an evaluation metric to measure the performance of classification, was calculated as 0.934. In addition, PR AUC, which is the area under the Precision-Recall (PR) curve, was computed as 0.953. These high scores indicate that the resulting model performs well in the classification. The other metrics also support the classification accuracy of this model. The findings of the analysis can help insurers better understand the underlying drivers of property damages and develop more accurate and effective strategies for risk mitigation. Furthermore, this study highlights the importance of developing class-specific risk assessment models to account for the imbalance across different classes.

보험약관 설명의무 관련 법제 현황 및 개선방안 - 약관규제법상 편입통제를 중심으로

The legislation concerning the duty to explain insurance terms and conditions has undergone significant refinement through various stages: the enactment of the Act on Regulation of Terms and Conditions in 1986, the amendment of the Commercial Act in 1991, the global financial crisis in 2008, the amendment of the Insurance Business Act in 2010, and the enactment of the Financial Consumer Protection Act in 2020. Currently, violations of the duty to explain are subject to multiple regulatory layers, including the control of incorporation under the Act on Regulation of Terms and Conditions, contract termination, indemnification for damages, administrative sanctions under the Financial Consumer Protection Act, and contract cancellation under the Commercial Act. The duty to explain aims to resolve information asymmetry and ensure the substantial autonomy and initiative of consumers in contract formation. However, detailed discussions are required regarding its rationale and requirements. The rationale for the duty to explain has been examined from the perspectives of contract law, tort law, and insurance law. Specific requirements may include information requirements (importance and asymmetry of information), obligor requirements (expertise and bargaining power of the obligor), and relational requirements (conflicts of interest and potential for abuse). These could serve as preliminary standards in legislative policy-making and judicial decisions related to the duty to explain. The control of incorporation under the Act on Regulation of Terms and Conditions is one of the most stringent measures for regulating violations of the duty to explain. However, when applied to statutory obligations, such as the duty of disclosure included in the terms and conditions, it results in issues where the applicability of statutory obligations differs based on whether they were explained. For standard terms in mandatory insurance like auto insurance, it is inequitable for the content to vary among customers based on whether explanations were given. Furthermore, excluding only disadvantageous clauses from the contract by applying incorporation control and thereby providing benefits that customers could not have obtained at the time of contract formation is also unfair. These problems arise from the application of incorporation control to violations of the duty to explain. Therefore, it is necessary to consider excluding or limiting the scope of incorporation control for violations of the duty to explain insurance terms. Discussions on the duty to explain have traditionally focused on consumer protection. Moving forward, there needs to be comprehensive consideration of consumer protection, the rationality of regulation, the principles of insurance, and equity in discussions on policy improvement.

국내 제3보험 시장 관련 경쟁정책 정비의 필요성과 고려사항에 관한 연구

As the use of big data by AI progresses, it is expected that the ultimate customization for individual customers, early response to various risks of actual functions due to diversification of insurance underwriting risks (period, type, etc.), and product composition that matches the cost of each sales channel will be required. In this flow of change, it is necessary to intervene in the policy of the supervisory authority and to revise the specialized supervision law and insurance contract law in order to sell insurance products that meet the needs of consumers through the realization of fair competition in the third-party insurance market. Under these changes, it is necessary for competition policy and supervisory authorities to intervene appropriately in order to realize fair competition in the third-party insurance market so that insurance products that meet the needs of consumers can be sold. Therefore, issues under the Fair Trade Act should be examined in relation to the promotion of competition in the third insurance market. It is necessary to recognize the legality of exchanging information on experience statistics related to insurance rates of third-party insurance products between insurance providers through the exemption from the application of the Fair Trade Act for cartel considering the special characteristics of the insurance industry. Consideration could be given to promoting fair competition through administrative guidance issued by supervisory authorities. In this way, considering the characteristics of the insurance industry, which requires a sufficient amount of information to set reasonable prices for insurance products through actuarial factors, it is possible to consider applying the doctrine of exemption from the Fair Trade Act by considering certain information exchange activities as permissible joint activities. In the current situation where the third insurance market, namely the non-life insurance industry, dominates the market, if a life insurer is unable to use the common system (insurance computer network) operated by the Insurance Development Institute, thereby substantially restricting competition in the future and failing to protect the rights and interests of policyholders, it cannot be ruled out that such behavior may constitute unfair competition among non-life insurers. This leaves open the possibility that the area excluded from the application of the Fair Trade Act to the insurance industry may eventually be reduced. Therefor it is suggested that it is necessary for insurers to cooperate with each other in exchanging information based on administrative guidance such as the Fair Competition Guidelines in the third-party insurance market in order to promote competition.

Improving Automobile Insurance Repair Claims Prediction Using Gradient Decent and Location-based Association Rules

Improving Automobile Insurance Repair Claims Prediction Using Gradient Decent and Location-based Association Rules

Hyper-Personalization in Motor Insurance: Understanding Telematics Insurance Adoption Using the Extended Technology Acceptance Model

Hyper-Personalization in Motor Insurance: Understanding Telematics Insurance Adoption Using the Extended Technology Acceptance Model

A comparative analysis of several multivariate zero-inflated and zero-modified models with applications in insurance

. Given that insurance companies often operate across multiple lines of insurance business, where claim frequencies on different lines are often correlated, it often becomes advantageous to employ multivariate count modeling where dependence between lines of business can be included in the modeling. Due to the operation of bonus-malus systems where there is a reward to the insurance policyholder for not claiming, claims data in automobile insurance often exhibits an excess of common zeros, a characteristic known as multivariate zero-inflation. In this article, we propose two approaches to address this feature. The first approach involves utilizing a multivariate zero-inflated model, where we artificially enhance the probability of common zeros based on standard multivariate count distributions. The second approach applies a multivariate zero-modified model, which separately handles the common zeros and the number of claims incurred in each line given that at least one claim occurs. We present several models under these frameworks, along with detailed inference procedures. In the applications section, we conduct a comprehensive comparative analysis of these models using data from an automobile insurance portfolio.

Powering AI-driven car damage identification based on VeHIDE dataset

ABSTRACT In the realm of automobile insurance, the imperative of automating car damage evaluation has surged, offering streamlined assessment processes and heightened accuracy. Deep learning techniques have notably influenced vehicle damage assessment, reshaping insurance procedures. However, the primary challenge remains in crafting robust models for damage detection and segmentation. This study presents a novel contribution through the development of the Vehicle Damage Detection (VehiDE) dataset, specifically tailored for comprehensive car damage assessment. The dataset, encompassing 13,945 high-resolution images annotated across eight damage categories, serves as a foundational resource for advancing automated damage identification methodologies. Notably, VehiDE offers support for multiple tasks, including classification, object detection, instance segmentation, and salient object detection, thereby fostering versatile research avenues. Through extensive experimental analysis, including the evaluation of state-of-the-art methodologies on VehiDE, this study not only highlights the dataset's efficacy but also unveils new insights into the challenging nature of car damage assessment. Moreover, the study pioneers the exploration of salient object detection techniques in this domain, showcasing their potential in addressing irregular damage types. By offering VehiDE to the research community, we aim to catalyze advancements in the field of car damage assessment, paving the way for more accurate and efficient automated systems.

The Role of Trust and Data Sharing Willingness in Users’ Acceptance of Insurance Telematics

Understanding customers’ attitudes toward insurance telematics can significantly affect knowledge management practices within the insurance industry. This study explores the factors affecting users’ acceptance of insurance telematics. A theoretical adoption model was proposed by extending the technology acceptance model and theory of planned behavior with a priorly proved construct trust and a new construct data sharing willingness (DSW). Trust is built upon perceived usefulness, ease of use, and DSW in this research. The findings display that trust is crucial in increasing a positive feeling toward insurance telematics, which affects users’ acceptance of insurance telematics, along with subjective norms. DSW was found to impact users’ level of trust significantly. Theoretically, these findings imply that trust offers a significant passage for factors influencing consumers’ adoption of technology. Practically, the findings shed light on assisting the auto insurance industry in its digital transformation and designing interventions to improve consumers’ adoption of insurance telematics. The authors also suggest regulators take actions to oversee the technology to ensure customer privacy protection and fair market competition.

Household Refundable Utility by taking out refundable insurance: Empirical study in the Spanish auto insurance market

This study investigates the expected benefits for Spanish households if they choose to purchase a refundable insurance policy that covers the deductible in the event of vehicle accidents. Using data obtained from the Spanish Survey of Household Finances alongside market data, this paper provides valuable empirical insights concerning the impact of refundable insurance policies on the overall expected utility of households (referred to as Household Refundable Utility) both from a technical-actuarial and a microeconomic point of view.

Attitudes and experiences of traditional Korean medicine practitioners in cases of traffic accidents: A qualitative study

ObjectiveThe surge in vehicles has escalated traffic volume, leading to an upswing in traffic accidents and subsequent disorders. Complex symptoms often characterize post-traumatic syndrome from these accidents. Traditional Korean medicine (TKM), increasingly used in car insurance, forms a substantial part of treatment costs. However, the current system lacks explicit fee guidelines and approval criteria for non-reimbursable TKM procedures, relying heavily on practitioners’ judgment without robust evidence-based decision-making. This scenario raises concerns about treatment appropriateness and transparency. We aim to explore physicians’ perspectives on utilizing TKM in emergency medicine, their participation sentiments, and their session selection process post-traffic accident. MethodsWe collected TKM practitioners’ opinions regarding their role in clinical environment and involvement in treating patients after traffic accidents. The need for comprehensive and standardized protocols for the diagnosis, treatment, management, and prognosis of patients with post-traumatic syndrome is evident. Additionally, improvements that facilitate rational decision-making by medical consumers and protect the treatment rights of healthcare providers are necessary. Results has emphasized the importance of evidence-based decision-making, establishing appropriate fee structures and detailed criteria for non-reimbursable TKM-based procedures, and enhancing regulations for the reliability and transparency of TKM-based treatments in the context of car insurance. Results and conclusionsThe perspective of healthcare providers directly involved in TKM-based treatments must be considered to maintain a sustainable vehicular insurance system, transcending administrative policy discourse. We highlighted the challenges and potential solutions for improving the effectiveness and appropriateness of TKM-based treatments in the context of car insurance.

Farmers Perceptions towards Agricultural Insurance Schemes in Southern Rajasthan: The Case of National Agricultural Insurance Scheme (NAIS) and Weather Base Crop Insurance Scheme (WBCIS)

Crop insurance is an insurance prearrangement aiming at mitigate the financial losses suffered by the farmers due to damage of their crops due to various production risks beyond their control like natural fire, weather, floods, pests, diseases etc. Government of India started offering crop insurance in 1985, with the Comprehensive Crop Insurance Scheme. This encourages farmers to carry on with their productive efforts, which not only improves the welfare of the farmers but finally helps in stabilizing the agricultural output. In total majority of respondents, the insured loanee farmers 88 (88/150) (58.70 per cent) stated favourable attitude, while 35 (35/150) (23.30 per cent) could be found under less favourable category. The 27 (27/150) (18.00 per cent) farmers reported under highly favourable proportion. Statement wise attitude of insured loanee farmers in five-point continuum recorded most favourable attitude with mean per cent score 81.52, 78.17, 77.49 and 71.50 and placed at 1st, 2nd, 3rd and 4th respectively. This stated that the farmers can sustain natural calamities and compensation is available in time.

AN EVALUATING STUDY ON AWARENESS AND UNDERSTANDING OF BIKE INSURANCE

Insurance is a contract between vehicle owner and the insurance company. The law mandates that every owner of a motor vehicle must have one motor insurance policy. Driving a motor vehicle without insurance in a public place is a punishable offence in terms of the Motor Vehicles Act. Insurance offers a range of benefits that protect both the rider and their investment. It provides financial protection for both the bike and the rider, covers a range of potential accidents and damages, and offers liability protection in case of legal claims. The present study is based on primary collected through Google Forms by circulating in various social media platforms with the objectives of to know the awareness level about insurance and factors consider while buying insurance policy. It has been found in the study is most of the respondent are aware about the insurance policy and most of the respondent considers the extend of coverage of risk by the insurance policy.

Characteristics of patients with Wilson disease in the United States: An insurance claims database study.

Wilson disease (WD) is a progressive, potentially fatal degenerative disease affecting the liver and central nervous system. Given its low prevalence, collecting data on large cohorts of patients with WD is challenging. Comprehensive insurance claims databases provide powerful tools to collect retrospective data on large numbers of patients with rare diseases. To describe patients with WD in the United States, their treatment and clinical outcome, using a large insurance claims database. This retrospective, longitudinal study was performed in the Clarivate Real-World Data Product database. All patients with ≥ 2 claims associated with an International Classification of Diseases 10 (ICD-10) diagnostic code for WD (E83.01) between 2016 and 2021 were included and followed until death or study end. Patients were divided into two groups by whether or not they were documented to have received a specific treatment for WD. Clinical manifestations, hospitalisations, liver transplantation and death were documented. Overall, 5376 patients with an ICD-10 diagnostic code for WD were identified. The mean age at inclusion was 41.2 years and 52.0% were men. A specific WD treatment was documented for 885 patients (15.1%), although the number of patients taking zinc salts may be underestimated due to over the counter purchase. At inclusion, the mean age of patients with a documented treatment was 36.6 ± 17.8 years vs 42.2 ± 19.6 years in those without a documented treatment. During follow-up, 273 patients (5.1%) died. Compared with the American general population, the standardised mortality ratio was 2.19. The proportion of patients with a documented WD-specific treatment who died during follow-up was 4.0% and the mean age at death 52.7 years. Patients treated for WD in the United States had an excess early mortality compared with the American population. These findings indicate that there is a significant unmet need for effective treatment for WD in the United States.

Factors Affecting Consumer Behavior Toward Purchasing Motor Insurance Policy in the Case of Selected Insurance Companies in Ethiopia

Factors Affecting Consumer Behavior Toward Purchasing Motor Insurance Policy in the Case of Selected Insurance Companies in Ethiopia

Implementation of Car Damage Detection in Insurance Claims

The automotive industry is witnessing a growing demand for advanced safety and maintenance systems to enhance vehicle safety and reduce maintenance costs. Car damage detection plays a pivotal role in achieving these objectives. This abstract provides an overview of the concept of car damage detection, its importance, and the technologies and methodologies involved. Car damage detection refers to the process of identifying and assessing physical damage to a vehicle, such as dents, scratches, cracks, or structural deformities. It is essential for various stakeholders, including car owners, insurance companies, and automotive service providers, as it enables timely repair and maintenance, facilitates insurance claims, and ensures road safety. Key Words: CNN, Mask R-CNN, Image Analysis, Computer Vision, Machine Learning, Deep-Learning.

Medical care services interplay between individual and Medicaid managed care markets in expansion versus non‐expansion states

AbstractWe study enrollment, medical service utilization, and incurred expenses of individual comprehensive and Medicaid managed care plans in states with or without Medicaid expansion adopted at the Affordable Care Act (ACA) early stage 2014–2016. To make healthcare services more accessible, 27 states expanded Medicaid eligibility to cover nearly‐poor non‐elderly adults who have had incomes between 100% and 138% of federal poverty level in 2014. In non‐expansion states, early enrollees in this income cohort had to choose individual market plans rather than Medicaid. Early enrollees' enrollment choices and their health status have had a great impact on the individual market premiums and Medicaid spending. We examined health insurers' annual regulatory filings with the National Association of Insurance Commissioners for 2013–2016 and found that: First, individual comprehensive insurance enrollment grew much faster in states not expanding Medicaid eligibility. Second, after incorporating early enrollees, per member per month (PMPM) medical service utilization and expenses of individual comprehensive insurance grew much faster in non‐expansion states. Third, among major types of medical utilization and expense measures, PMPM hospital inpatient days and PMPM prescription drug expenses increased substantially since 2014. Finally, Medicaid beneficiaries generated more PMPM medical utilization and expenses in expansion states.

How far shall the protection of a traffic accident victim go under motor third party liability insurance?

This paper was inspired by a recent reference for a preliminary ruling lodged by the French Cour de Cassation (Mutuelle assurance des travailleurs mutualistes (Matmut) v TN and Others, Case C-236/23). The Cour de Cassation asked whether ‘Articles 3 and 13 ofDirective 2009/103 ofthe European Parliament and oftheCouncil of16 September 2009 must be interpreted as precluding the nullity of a contract for civil liability motor insurance from being declared enforceable against a passenger who is a victim where that person is also the policyholder and intentionally made a false statement atthe time of conclusion ofthe contract which gave rise to that nullity’. The Cour de Cassation observed that the CJEU had never ruled whether thenullity ofthe contract can be relied on against a victim who was a passenger in the vehicle where the victim is also the policyholder and the person who made the intentional false statement, which resulted in the insurance contract being null and void under national law. None ofthe judgments delivered by theCJEU relate to that specific situation. Even though the Court has been strengthening the rights of victims oftraffic accidents for many years, by applying arigorous interpretation oftheprovisions ofthemotor insurance directives precluding national rules that would allow for theavoidance ofapolicy response towards apassenger beyond the scope ofthe exclusions expressly allowed in the directives, some questions remain. In this case, we are dealing with an obvious insurance fraud committed by a person who subsequently suffered injuries in an accident caused by a driver ofthe vehicle for which a policy had been taken out by the injured person being atthe same time a policyholder. Should the EU law protect also those persons who are clearly attempting tomisuse an insurance contract? Shall we slur over the fact that by its nature an insurance contract has always been based onmutual trust (uberrimae fidei contract)? Should the rules governing motor third party liability insurance go as far as in no other insurance? Do fraudsters deserve protection? Keywords

Machine Learning Approaches for Insurance Pricing: A Case Study of Public Liability Coverage in Morocco

As data-driven technologies continue to advance, the importance of machine learning (ML) techniques in enhancing the accuracy of insurance premium calculations cannot be overstated. That is especially crucial because traditional actuarial methods often fail to incorporate individual risk factors fully. This limitation significantly impacts the insurance industry's capacity to accurately determine premium prices, which in turn affects financial stability and customer satisfaction. This research seeks to assess the efficiency insurance premium calculations through different regression models in ML, including polynomial, decision tree, random forest, and gradient boosting. The study employs rigorous analysis techniques using a comprehensive dataset from a Moroccan vehicle insurance company, including claim history and insurance categories. The dataset is split into training and testing sets to assess the accuracy of the ML models using metrics such as Mean Squared Error (MSE), Root Mean Squared Error (RMSE), and the coefficient of determination (R-squared). Initial findings suggest that ML models greatly surpass traditional actuarial methods, indicating the potential for machine learning to transform premium pricing strategies. That could result in more customized and financially sustainable outcomes within the insurance industry. The findings of this paper are likely to contribute to national insurance premium policy and expand the existing literature on this subject in Morocco.

The Impact of Electronic Management on Customer Experience in Vehicle Insurance Companies within the Riyadh Region

Electronic management and electronic provision of insurance services are considered among the challenges facing the insurance sector in the Kingdom of Saudi Arabia to keep pace with the Kingdom’s Vision 2030. Therefore, the reality of this transformation and the factors affecting it were studied by surveying the opinions of insurance policyholders about the quality of electronic services provided by insurance companies and their impact on the extent of their benefit. Regression analysis, effect estimation using structural models, and analysis of variance were used to test the study hypotheses. The results showed that electronic transformation in the provision of insurance services by Saudi insurance companies still requires significant development in terms of comprehensiveness and diversity of services, and that the success of this is linked to the quality of electronic service from an insurance point of view. The most important recommendations were the need for Saudi insurance companies to pay attention to spreading the culture of electronic transformation among their subordinates, expanding the scope of electronic services, and raising their quality in accordance with the priorities revealed by the study, especially with regard to ensuring that the content of the website is up-to-date and comprehensive, and that the use of the website is safe and reliable for the customer. Adequate technical support must be provided to serve customers who benefit from the insurance company’s electronic services.

Role of Livestock Insurance in Mitigating Financial Impact of Epidemic Outbreaks on Cattle Farms in India

Purpose: The aim of the study was to analyze the role of livestock insurance in mitigating financial impact of epidemic outbreaks on cattle farms in India. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Livestock insurance plays a crucial role in mitigating the financial impact of epidemic outbreaks on cattle farms. Studies consistently show that cattle farms with livestock insurance experience lower financial losses post-epidemic compared to those without insurance, as they are able to recoup a portion of their losses through insurance claims. Moreover, insured cattle farms exhibit a higher recovery rate, enabling them to rebuild their herds more quickly and resume normal operations. Comprehensive livestock insurance policies that address various risk factors, including disease outbreaks and market price fluctuations, are particularly effective in stabilizing farm incomes and enhancing financial resilience. Unique Contribution to Theory, Practice and Policy: Risk management theory, theory of planned behavior (TPB) & prospect theory may be used to anchor future studies on analyze the role of livestock insurance in mitigating financial impact of epidemic outbreaks on cattle farms. Subsidizing premiums can change the economic calculus for farmers, making the decision to invest in insurance more attractive and financially feasible. Encouraging regional risk pools would necessitate legislative support and possibly inter-state agreements to facilitate broader risk management strategies.