BAS2019CSAACaseCompetition
Team18ElisaBong,Jiahao Huang,KelvinChristian,YupengChen
BackgroundandCaseObjectives
DriverAveragingRater
DriverAssignmentRater
Comparison Consideration Re-evaluation
GeneralizedLinearModel(GLM)
2
Rating Methods
3
DriverAveragingRater DriverAssignmentRater
Driver1
Driver2
Driver3
Vehicle1
Vehicle2
Driver1
Driver2
Driver3
Vehicle1
Vehicle2
AverageDriverLevel
4
5Result:DriverAssignmentà LowerPremium
SafeDriver
SafeDriver
Vehicle1
Vehicle2
SafeDriver
SafeDriver
Vehicle1
Vehicle2
AverageDriverLevel
6
DangerousDriver
DangerousDriver
DriverAssignmentRaterDriverAveragingRater
DriverAssignment Rater →Lower Premium
SafeDriver
DangerousDriver
Vehicle1
7
SafeDriver
Vehicle2
Considerations
CustomerBehaviorsReducingLossRatio
ReasonablePricingLessAmountofWork
DriverAveraging DriverAssigning
MinimizedRisk
8
DataEvaluation
9
Generalized LinearModel(GLM)&Application
DependentVariableError
LinkFunction
10
LinearRegression1
2
3
11
GLMOutput
Model Year
Vehicle Use
YearsOfDrivingExperience
Driver PointGood
Student
Multipolicy
Persistency with Company
12
RatingVariables:DrivingExperience
13
RatingVariables:DriverPoints
1.0
1.3
1.5
1.8
2.0
0 1 2 3+
● IndicatedFactors
14
RatingVariables:ModelYear
0.5
0.7
0.9
1.1
1.3
1.5 ● IndicatedFactors
15
Solution
YearsOfDrivingExperience
Driver Point
Model Year
Vehicle UseModel Year
GLM
UPDATED
ADDED
REMAIN
OLDData
NEWData
Model Year
Vehicle Use
SelectingTimePeriodoftheData
TechnologicalAdvancement
AutoIndustry
PublicPolicy
RoadCondition
16
TotalClaim
ClaimAmount ClaimFrequency
Customer
Countrywide Model
Pros Cons
InsuranceCompany
HigherEfficiency Convenience
InsuranceCompany
AccuracyofModel
17
BusinessChallenges
18
NewIssues
HighLossRatio Rate Retention
ExpandYouthDriverMarket LowCloseRatio
19
GoodStudent
PersistencywithCompany
Non-RatingStrategies
20
YOUTH MARKETEXPANSION
● MobileApp● MarketinginCollege
DROPPINGRETENTIONRATE OTHEROPTIONS
● PolicymakerCollaboration
● CustomerLoyaltyProgram
THANKYOU!
Appendices
22
AppendixA– Merging– DrivingExperience
23
0
2
3+
1
21.60%
18.54%
16.89%
2.91%
21.54%
2.91%
16.89%
19.70%
2.91%
Years Original Combine 0 and 1 Combine 0, 1, 2
AppendixB–YouthDriverMarket
24