A logistic regression approach to estimating customer profit loss due to lapses in insurance
Guillén, Montserrat (Universitat de Barcelona. Departament d'Econometria)
Pérez Marín, Ana María (Universitat de Barcelona. Departament d'Econometria)
Alcañiz, Manuela (Universitat de Barcelona. Departament d'Econometria)
Xarxa de Referència en Economia Aplicada (XREAP)

Imprint: Xarxa de Referència en Economia Aplicada (XREAP) 2011
Description: 40 p.
Abstract: This article focuses on business risk management in the insurance industry. A methodology for estimating the profit loss caused by each customer in the portfolio due to policy cancellation is proposed. Using data from a European insurance company, customer behaviour over time is analyzed in order to estimate the probability of policy cancelation and the resulting potential profit loss due to cancellation. Customers may have up to two different lines of business contracts: motor insurance and other diverse insurance (such as, home contents, life or accident insurance). Implications for understanding customer cancellation behaviour as the core of business risk management are outlined.
Rights: Aquest document està subjecte a una llicència d'ús de Creative Commons, amb la qual es permet copiar, distribuir i comunicar públicament l'obra sempre que se'n citin l'autor original, la universitat i la xarxa i no se'n faci cap ús comercial ni obra derivada, tal com queda estipulat en la llicència d'ús Creative Commons
Language: Anglès.
Series: Documents de treball de la Xarxa de Referència en Economia Aplicada (XREAP)
Series: XREAP ; 2011-13
Document: workingPaper
Subject: Policy cancellation ; Customer loyalty ; Profit loss ; Customer behavior ; Insurance ; Risk management ; Regression analysis ; Assegurances ; Gestió del risc ; Anàlisi de regressió

Adreça alternativa: https://hdl.handle.net/2072/171085

39 p, 183.4 KB

The record appears in these collections:
Research literature > Studies

 Record created 2012-08-31, last modified 2019-04-05

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