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