Research on Traffic Violation Factors in Vehicle Insurance Pricing Based on Generalized Linear Model

Zhanhong Mu

2024

Abstract

Automobile insurance plays a pivotal role within the property insurance market. A meticulous examination of diverse factors influencing the pricing of automobile insurance holds profound significance for insurance companies in mitigating operational risks, drivers in actively cultivating better driving habits, and fostering a secure and orderly traffic milieu. Presently, despite the inclusion of traffic violation factors in China's auto insurance pricing, the coefficient often defaults to 1 in practice, thus lacking widespread implementation. To effectively leverage the incentivizing and constraining effects of traffic violation factors on auto insurance premiums, this study utilizes data encompassing traffic violations and auto insurance claims of vehicles within a Chinese province from 2021 to 2023 as research samples. It delineates vehicle type, traffic violation frequency, and traffic violation type as explanatory variables. Mindful of multicollinearity and vehicle type heterogeneity, a generalized linear model is employed to scrutinize the correlation between traffic violations and the intensity and frequency of auto insurance claims. The findings underscore that vehicle traffic violations positively influence both claim intensity and frequency, with distinct vehicle types exhibiting varying sensitivities to different types of traffic infractions.

Paper Citation

in Harvard Style

Mu Z. (2024). Research on Traffic Violation Factors in Vehicle Insurance Pricing Based on Generalized Linear Model. In Proceedings of the 1st International Conference on Innovations in Applied Mathematics, Physics and Astronomy - Volume 1: IAMPA; ISBN 978-989-758-722-1, SciTePress, pages 68-77. DOI: 10.5220/0012993100004601

in Bibtex Style

@conference{iampa24,
author={Zhanhong Mu},
title={Research on Traffic Violation Factors in Vehicle Insurance Pricing Based on Generalized Linear Model},
booktitle={Proceedings of the 1st International Conference on Innovations in Applied Mathematics, Physics and Astronomy - Volume 1: IAMPA},
year={2024},
pages={68-77},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012993100004601},
isbn={978-989-758-722-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Innovations in Applied Mathematics, Physics and Astronomy - Volume 1: IAMPA
TI - Research on Traffic Violation Factors in Vehicle Insurance Pricing Based on Generalized Linear Model
SN - 978-989-758-722-1
AU - Mu Z.
PY - 2024
SP - 68
EP - 77
DO - 10.5220/0012993100004601
PB - SciTePress