Determining and Classifying the Factors Affecting Risk in Automobile Hull Insurance Using Fuzzy Delphi Method and Factor Analysis

Automobile hull insurance is a line of business which has attracted much attention due to the current lifestyles and the high rate of vehicle applications in the daily life transportations. These policies generated more than 13.7% of the total premium in automobile insurances in 1394 (2015) [1]. Since buying this policy for the vehicles is optional, and the rates in this line of business is competitive, a competitive atmosphere for attracting low risk drivers has been created for the insurance companies. However, most of the insurers still use comparative rates and pay no or less attention to the factors affecting risk in their 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 also taking into account the shortcomings of the databases in insurance companies and the central insurance of Iran regarding the available policies in this field, this paper focuses on determining the risk factors affecting premium calculation in the automobile hull insurance from the viewpoint of the experts. In this regard, fuzzy Delphi method is utilized and the effective factors are reduced by their dimension and classified by SmartPLS.