Modeling of Frequency and Size of Claims in Auto Insurance

Student: Drobnjak Milica

Educational Programme: Financial Markets and Financial Institutions (Master)

Year of Graduation: 2021

The first part of the article analyses the scientific literature devoted to modelling the frequency and size of claims of insured events. The second part of the work is devoted to practical modelling of the number and size of claims for damages. The article used data on auto insurance of one of the CIS countries. The linear model, which includes all factors, including the size of claims, has proven to be the best model for modelling the frequency of claims. To model the size of claims, it is better to include in the GLM with a lognormal distribution the frequency of claims and only significant factors, namely: the age of the vehicle, the number of persons allowed to drive, whether the vehicle was registered in the sixth region and whether the insurance policy was signed at the first or thirtieth branch.

Student Theses at HSE must be completed in accordance with the University Rules and regulations specified by each educational programme.

Summaries of all theses must be published and made freely available on the HSE website.

The full text of a thesis can be published in open access on the HSE website only if the authoring student (copyright holder) agrees, or, if the thesis was written by a team of students, if all the co-authors (copyright holders) agree. After a thesis is published on the HSE website, it obtains the status of an online publication.

Student theses are objects of copyright and their use is subject to limitations in accordance with the Russian Federation’s law on intellectual property.

In the event that a thesis is quoted or otherwise used, reference to the author’s name and the source of quotation is required.

Search all student theses