Measuring the Adequacy of Loss Distribution for the Ghanaian Auto Insurance Risk Exposure through Maximum Likelihood Estimation

Azaare, Jacob; Zhao, Weihua; Zhu, Yingying; Armah, Gabriel; Engmann, Gideon Mensah; Kwadwo, Socrates Modzi; Ahia, Bright Nana Kwame; Ampaw, Enock Mintah

doi:10.4236/ojbm.2022.102047

Cited by 2 publications

(1 citation statement)

References 24 publications

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“…However, the premium, which is computed based on the policyholder’s risk, can influence the decision to purchase a policy (Alhassan, 2016; Alhassan et al, 2015; Alhassan & Biekpe, 2016a; Azaare et al, 2021; Bülbül & Baykal, 2016; Isotupa et al, 2019). Majority of studies look at premium estimates from a traditional perspective on the basis of claims frequency and severity from policyholders’ (Azaare et al, 2022; Deniut et al, 2007). From both a priori and a posteriori point of view, the frequency and severity of policyholder claims have been the major dependent variables in rate-making models.…”

Section: Introductionmentioning

confidence: 99%

Exploring the Effects of Classical Auto Insurance Rating Variables on Premium in ARDL: Is the high Policyholders’ Premium in Ghana Justified?

2022

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To better understand the actual rating variables that affects Auto insurance Policyholders’ premium, this paper attempts to provide empirical evidence to justify which ones are significant and needed to be considered by insurers by adopting the autoregressive distributed lag (ARDL) model. In satisfying all the conditions for ARDL application, unit root, Heteroskedasticity, normality, dynamic stability and serial correlation tests were conducted. We estimate the effects of each rating variable on Premium taking into consideration whether the policy of the insured is Third-Party or Comprehensive. These rating variables in the ARDL model serves as the independent variables that establishes the short and long-run relationships between them and the Premium as the dependent variable. The results suggest that not all the classical rating variables used in the market significantly impact Premium. Whiles, to some extent, we found a varying degree of variables impact on Premium depending on the insurance type, the autos cubic capacity, which plays a cogent role on the basic Premium in Ghana, is insignificant. Also, policyholders’ age characteristics are statistically significant but are excluded in the premium calculations. Thus, this paper shows the need to consider all the other possible rating variables, including policyholders’ age into the Ghanaian insurance pricing system, whiles autos cubic capacity considering the weight it put on the basic Premium should be re-examined. This would help to obtain a financially balanced and optimal pricing system for policyholders.

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Section: Introductionmentioning

confidence: 99%

Exploring the Effects of Classical Auto Insurance Rating Variables on Premium in ARDL: Is the high Policyholders’ Premium in Ghana Justified?

2022

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Evaluating E-Government Development among Africa Union Member States: An Analysis of the Impact of E-Government on Public Administration and Governance in Ghana

Tiika,

Tang,

Azaare

et al. 2024

Sustainability

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The adoption of e-government promises efficiency in the delivery of government services to citizens across various sectors of the economy. Due to this, most Global North countries have advanced in the deployment of e-government for improving public-service delivery. Unfortunately, most African countries, including Ghana, are still lagging in e-government development. This study examined e-government development across African Union member states. It explored the role of e-government in the reform of public administration and governance, focusing on Ghana as a case study. Using a mixed-method approach, the study analyzed secondary data of key e-government indicators using the TOPSIS method. This helped underscore the transformative impact on public administration and governance by using primary data via interviews. The results show advanced progress in some African countries, including Ghana, due to aligned digital strategies with national policies. Also, technology integration is evident in Ghana’s public sector and is reshaping public administration and governance. The study recommends that to achieve the long-term sustainability of these advancements, interagency collaboration and data-sharing mechanisms between the public and private sectors should be strengthened, while all forms of silos should be broken to promote the delivery of services. This study enhances public-service delivery by identifying areas needing both improvement and allocation of resources for shaping e-government policy development.

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Measuring the Adequacy of Loss Distribution for the Ghanaian Auto Insurance Risk Exposure through Maximum Likelihood Estimation

Cited by 2 publications

References 24 publications

Exploring the Effects of Classical Auto Insurance Rating Variables on Premium in ARDL: Is the high Policyholders’ Premium in Ghana Justified?

Exploring the Effects of Classical Auto Insurance Rating Variables on Premium in ARDL: Is the high Policyholders’ Premium in Ghana Justified?

Evaluating E-Government Development among Africa Union Member States: An Analysis of the Impact of E-Government on Public Administration and Governance in Ghana

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