Testing for Hidden Information and Action in Automobile Insurance Market

I test the presence of hidden information and action in the automobile insurance market using a data set from several Colombian insurers. To identify the presence of hidden information I find a common knowledge variable providing information on policyholder s risk type which is related to both experienced risk and insurance demand and that was excluded from the pricing mechanism. Such unused variable is the record of policyholder s traffic offenses. I find evidence of adverse selection in six of the nine insurance companies for which the test is performed. From the point of view of hidden action I develop a dynamic model of effort in accident prevention given an insurance contract with bonus experience rating scheme and I show that individual accident probability decreases with previous accidents. This result brings a testable implication for the empirical identification of hidden action and based on that result I estimate an econometric model of the time spans between the purchase of the insurance and the first claim, between the first claim and the second one, and so on. I find strong evidence on the existence of unobserved heterogeneity that deceives the testable implication. Once the unobserved heterogeneity is controlled, I find conclusive statistical grounds supporting the presence of moral hazard in the Colombian insurance market.

The United Kingdom automobile insurance market. Final report.

National Highway Traffic Safety Administration, Office of Research and Development, Washington, D.C.

State no-fault automobile insurance experience 1971-1977.

Mode of access: Internet.

Private passenger automobile insurance : premiums filed with the Department of Insurance /

"January 1990."

Automobile marketing practices: finance and insurance. Hearings before a subcommittee of the Committee on Interstate and Foreign Commerce, United States Senate, Eighty-fifth Congress, first session, pursuant to S. Res. 26, a resolution to investigate certain problems relating to interstate and foreign commerce ...

Hearings held Mar.18, 1957-Aug.7, 1958.

Prédiction de l'attrition en date de renouvellement en assurance automobile avec processus gaussiens

Le domaine de l’assurance automobile fonctionne par cycles présentant des phases de profitabilité et d’autres de non-profitabilité. Dans les phases de non-profitabilité, les compagnies d’assurance ont généralement le réflexe d’augmenter le coût des primes afin de tenter de réduire les pertes. Par contre, de très grandes augmentations peuvent avoir pour effet de massivement faire fuir la clientèle vers les compétiteurs. Un trop haut taux d’attrition pourrait avoir un effet négatif sur la profitabilité à long terme de la compagnie. Une bonne gestion des augmentations de taux se révèle donc primordiale pour une compagnie d’assurance. Ce mémoire a pour but de construire un outil de simulation de l’allure du porte- feuille d’assurance détenu par un assureur en fonction du changement de taux proposé à chacun des assurés. Une procédure utilisant des régressions à l’aide de processus gaus- siens univariés est développée. Cette procédure offre une performance supérieure à la régression logistique, le modèle généralement utilisé pour effectuer ce genre de tâche.

Is the Market Classification of Risk Always Efficient? - Evidence from German Third Party Motor Insurance

This paper studies the empirical effects of risk classification in the mandatory third-party motor insurance of Germany following the European Union’s directive to de-regulate insurance tariffs of 1994. We find evidence that inefficient risk categories had been selected while potentially efficient information was dismissed. Risk classification did generally not improve the efficiency of contracting or the composition of insureds in this market. These findings are partly explained by the continuing existence of institutional restraints in this market such as compulsory fixed coverage and unitary owner insurance.

The insurance industry. Hearings before the Subcommittee on Antitrust and Monopoly of the Committee on the Judiciary, United States Senate, Eighty-fifth Congress, second session, pursuant to S. Res. 231 ...

Continuous paging.

The insurance industry. Hearings, Eighty-fifth Congress, second session, pursuant to S. Res. 231 .

Continuous paging.

Economic consequences of automobile accident injuries.

Report presents results of a survey made by the Bureau of the Census and Westat Research, inc. for the Automobile Insurance and Compensation Study of the Dept. of Transportation.

Cyclopedia of automobile law and practice, with forms.

Kept up to date by cumulative pocket parts and replacement vols.

Compulsory motor vehicle liability insurance.

"Legislative Research Unit research response."

National no-fault motor vehicle insurance act. Hearings, Ninety-third Congress, first session, on S. 354 ..

"Serial no. 93-29."

Insurance discounts : traffic safety tips.

Mode of access: Internet.

146th Annual Report of the Insurance Division, August 2016

Annual report on the insurance industry. Statistical tables reflect in detail the financial condition of all insurance companies licensed to do business in Iowa, based on their sworn annual statements covering the twelve-month period beginning January 1, 2015, and ending December 31, 2015, filed with the Division.