Bundled automobile insurance coverage and accidents

Li, Chu-Shiu; Liu, Chwen-Chi; Peng, Sheng-Chang

doi:10.1016/j.aap.2012.03.026

Cited by 10 publications

(7 citation statements)

References 14 publications

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“…Among the policyholders, 87.4% are aged 30–60. Interestingly, 75.1% are female, indicating a significant gender imbalance, consistent with the patterns of gender in studies by Li et al (2007, 2013a) and Wang et al (2008). The main reason is that females aged 30–60 pay the lowest premium rates based on the gender–age coefficient, as shown in Table A1.…”

Section: Resultssupporting

confidence: 89%

The relationships between vehicle characteristics and automobile accidents

Wu¹,

Li²,

Peng

2020

Risk Manage Insurance Review

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In this study, the relationships between vehicle characteristics and automobile accidents are examined based on physical damage insurance claims data from a major property insurance company in Taiwan. For the whole sample, we find that the car characteristics index (an estimate for the replacement cost associated with claims) is negatively correlated with the claim probability and positively correlated with claim severity. New cars and sport utility vehicles (SUVs) (compared with Sedans) are associated with higher claim probability. However, SUVs (compared with Sedans) are associated with lower claim severity. Small (compared with large) vehicles are associated with lower claim probability and lower claim severity. Compared with the imported cars from Germany, policyholders with the imported cars from Japan or the US are more likely to file a claim but to have lower claim severity. On subgroup analyses, the relationship between car characteristics index and claim probability is positive for domestic cars and negative for imported cars, implying that imported car policies subsidize domestic car policies. We also find the impacts of vehicle characteristics on claim probability and claim severity differ for domestic cars and imported cars in subsamples. Our empirical evidence provides important implications for premium pricing in the automobile physical damage insurance industry.

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Section: Resultssupporting

confidence: 89%

The relationships between vehicle characteristics and automobile accidents

Wu¹,

Li²,

Peng

2020

Risk Manage Insurance Review

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“…One can refers to Dahlby (1983Dahlby ( /1992 for Canada, Puelz and Snow (1994) for USA, Richaudeau (1999) for France, Saito (2006) for Japan, Kim et al (2009) for Korea, Englund (2010) for Denmark, Shi and Valdez (2011) for Singapore, and Li et al (2013) for Taiwan case. Besides a recent review article by Dionne et al (2013) which summarized the theoretical and the empirical literature concerning asymmetric information in road safety and automobile insurance market.…”

mentioning

confidence: 99%

Testing for Asymmetric Information in Tunisian Automobile Insurance Market

Karaa¹,

Benlagha²

2015

MJSS

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Asymmetric information has become one of the most influential theoretical concepts in explaining competitive insurance market. In contract theory, asymmetric information is the situation when one party of an economic transaction possesses information that is not available to the other contractual party.In this perspective, this paper aims to investigate the presence of asymmetric information in Tunisian automobile insurance market. This investigation is made using an individual data set during the year 2009. For this purpose, we employ two empirical approaches; the bivariate probit model and the two stages approach of Richaudeau (1999)

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“…Automobile insurance is used to cover the risk of liability loss exposures, property loss exposures, and personal loss exposures arising out of the ownership, maintenance, or use of automobiles (Cook, 2014). According to Li et al (2013), the Taiwanese automobile insurance market is implemented with compulsory insurance and voluntary insurance. Compulsory insurance is only liable on no-fault compensation associated with the personal injury of the victim in a car accident, while voluntary insurance covers vehicle damage and voluntary liability as well as risks such as mishaps to the car itself, bodily injury, and other property damages caused in an accident.…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of Prevention Focus on the Relationships Among Driving Accident History, Risk Perception, and Consumers’ Automobile Insurance Coverage Decisions

2023

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The primary aim of our research was to examine the moderating role of prevention focus (PRE) and the mediating role of risk perception (RP) on the relationship between driving accident history (DAH) and insurance coverage (IC) decisions to test this moderated mediation mechanism. We collected survey data from 808 newly eligible voluntary automobile liability insurance policyholders in Taiwan and analyzed the data using PROCESS macro. The estimated results showed that PRE moderated the indirect effect of DAH on IC through RP. In general, a worse DAH would increase the RP of people who were high prevention-focused, thereby increasing their willingness to purchase a higher IC. Conversely, a worse DAH would not increase the RP of people who were low prevention-focused, and such people would not increase or would even decrease their IC. The results provide an explanation for the inconsistent paths from DAH to IC in the literature. From a marketing perspective of psychographic segmentation, our research helps insurance companies to determine what types of consumers they should pay more attention to and to formulate marketing strategies. JEL: D91 G52 E21

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Bundled automobile insurance coverage and accidents

Cited by 10 publications

References 14 publications

The relationships between vehicle characteristics and automobile accidents

The relationships between vehicle characteristics and automobile accidents

Testing for Asymmetric Information in Tunisian Automobile Insurance Market

Effect of Prevention Focus on the Relationships Among Driving Accident History, Risk Perception, and Consumers’ Automobile Insurance Coverage Decisions

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