Please use this identifier to cite or link to this item:
Title: Forecasting the maximum compensation offer in the automobile BI claims negotiation process
Author: Ayuso, Mercedes
Santolino, Miguel
Keywords: Accidents de circulació
Víctimes d'accidents de circulació
Assegurances d'automòbils
Traffic accidents
Traffic accident victims
Automobile insurance
Issue Date: 2008
Publisher: Universitat de Barcelona. Institut de Recerca en Economia Aplicada Regional i Pública
Series/Report no: [WP E-IR08/07]
Abstract: Most motor bodily injury (BI) claims are settled by negotiation, with fewer than 5% of cases going to court. A well-defined negotiation strategy is thus very useful for insurance companies. In this paper we assume that the monetary compensation awarded in court is the upper amount to be offered by the insurer in the negotiation process. Using a real database, a log-linear model is implemented to estimate the maximal offer. Non-spherical disturbances are detected. Correlation occurs when various claims are settled in the same judicial verdict. Group wise heteroscedasticity is due to the influence of the forensic valuation on the final compensation amount. An alternative approximation based on generalized inference theory is applied to estimate confidence intervals on variance components, since classical interval estimates may be unreliable for datasets with unbalanced structures.
Note: Reproducció del document publicat a:
It is part of: IREA – Working Papers, 2008, IR08/07
ISSN: 2014-1254
Appears in Collections:Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

Files in This Item:
File Description SizeFormat 
IR08-007_Ayuso.pdf123.6 kBAdobe PDFView/Open

This item is licensed under a Creative Commons License Creative Commons