Identifying and classifying the factors affecting risk in automobile hull insurance in Iran using fuzzy Delphi method and factor analysis

Automobile hull insurance has attracted much attention due to the high rate of vehicle applications in daily lives. Since purchasing these policies is optional in Iran and their premium rates are set competitively, a competition is formed among the insurance companies for attracting low risk drivers. However, most of the insurers still use comparative rates and pay no or less attention to the factors affecting risk in premium calculations. Considering the importance of fair ratemaking in attracting and maintaining good risks and encouraging bad risks to repent or leave the portfolio, and taking into account the shortcomings of the available databases, this paper focuses on determining and classifying the risk factors affecting premium calculation in automobile hull insurance from the viewpoint of the experts. In this regard, Fuzzy Delphi method is utilized, the factors are classified and the efficiency of the classification is checked by using Confirmatory Factor Analysis (CFA).