The Relationships among Risk Factors, Coverage, Claim Amount: A Case Study of Auto Physical Damage Insurance

摘要

The purpose of this research is to examine the relationships among risk factors, selection of coverage, and claim amount. In this regard, auto physical damage insurance data from a property-liability company in Taiwan is analyzed using a structural equitation model. The relationships among risk factors, selection of coverage, and claim amount are analyzed using 14 independent variables and two explained variables. The results indicate that human factors, road environment factors, and place have positive significant impacts on selection of coverage, and that coverage has a negative correlation with claim amount. The study's resultscan be used to establish an effective underwriting and rating system.