BAS 2019 CSAA Case Competition - University of California...

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