This fifth attribute Relative consumer saving is defined as the discount consumers will receive when adopting the usage based insurance policy. Alternatively, the consumer could register the number of kilometers driven manually through a website, which does not harm privacy of location and space. The insurer can measure the number of kilometers driven automatically through GPS tracking, which harms privacy of location and space. Privacy of location and space is operationalized into the attribute Kilometer registration, which is an important input for usage based car insurance. We provide empirical evidence for the case of labor income risk and car insurance in the UK. The main result is that households with higher labor income risk spend more on insurance. The proposed method was successfully used to develop a system for a large UK insurance company capable of analysing and classifying 25000 documents related to car insurance, as well as creating template contract documents.

Several recent articles on empirical contract theory and insurance have tested for a positive correlation between coverage and ex post risk, as predicted by standard models of pure adverse selection or pure moral hazard. Our tests confirm that the estimated correlation is positive; they also suggest the presence of market power. Moreover, we find that households spend more on insurance if they participate in the stock market. If you own a primary residence home that you rent out sporadically for short amount of periods, an independent agency may be able to sift through the underwriters it deals with to find a temporary rental policy. And, when their unemployment benefits ran out the unemployed Americans could not even buy food for their families. In the results presented in the paper CT and C4.5 trees have been compared, from the accuracy and structural stability (explaining capacity) point of view and, for both algorithms, the best class distribution has been searched..

The paper describes the system, presents testing results and discusses perspectives. The paper discusses the problem of automated processing and classification of unstructured text and proposes a new approach based on the multi-agent technology. We analyse how CT trees behave when used to solve a fraud detection problem in a car insurance company. This domain has two important characteristics: the explanation given to the classification made is critical to help investigating the received reports or claims, and besides, this is a typical example of class imbalance problem due to its skewed class distribution. The consistency of the model results was verified randomly dividing all respondents’ choice-preferences in two equal parts and running the analysis individually for both parts. Based on the defined attributes, choice-sets are composed in which respondents compare two alternative usage based insurance options. Based on the choice-sets and defined attributes, a questionnaire was designed and subsequently pretested with three participants.

The results of the conjoint analysis will provide the utility that participants derive from every attribute level. The results of the regression analysis implied that some of the small new cars have the same safety level as large old ones. The knowledge of impact biomechanics accumulated since the middle of the sixties seems to have improved the interior safety of cars. The purpose of this monograph is to describe trends in the interior safety of cars in terms of the frequency and severity of injuries among the car occupants, especially the drivers. The total number of such cars was 339,675 in which 8,592 drivers and 5,469 passengers were injured or killed. The material comprises all accident-involved private cars reported to an insurance company during a five-year period. If you are going to be leaving your home unattended then you should ensure that you have good unoccupied house insurance. And if you had poor health even in your past even then the health insurance policy is going to be really very costly. But if you don’t want to think about bill-paying right when you get home — there’s always plenty of other things to tend to — then some forethought can eliminate that chore.

By this the companies get to know that in how much time you are going to get your license as they know the maximum time period in which you have to pass your driving license test. How can they get away with this? At an average accident rate of 16.3 percent, this 10 percent increase in auto accidents can be interpreted as the effect of moral hazard on car accidents. With this app, you can store relevant information regarding your vehicle, your personal data, and your emergency contacts so they are within a few taps after an accident. It is important that you have proper insurance so that in case anything happens you can feel safe. Privacy of data and image is operationalized into the reuse of data generated by a usage based insurance service for secondary purposes. As both options reuse data provided by the user for secondary purposes, they both negatively affect privacy of data and image. By doing so, insurers gain in-depth insights in the actual user behavior which harms privacy of behavior and action. The attribute Additional insurance offerings refers to the insurer sending personalized offerings and promotions based on the data collected about the user.