Application of share of choice model in insurance industry based on conjoint analysis and mathematical programming: A case study of automobile insurance in China

Author

Fragnière, Emmanuel ; Moresino, Francesco ; Shen, Yi

Author_Institution

Sch. of Manage., Univ. of Bath, Bath, UK

fYear

2012

fDate

8-10 July 2012

Firstpage

404

Lastpage

409

Abstract

The automobile insurance is a massive sector of the whole property insurance industry in China. However, there is a big deficit in this huge market. Since the existing pricing models are only based on the cost and risk factors, we propose a share of choice model based on conjoint analysis and mathematical programming that combines consumers´ perception and market share. This model provides a new method to optimize the design of automobile insurance products in China.

Keywords

automobile industry; consumer behaviour; insurance; macroeconomics; mathematical programming; pricing; product design; risk management; Chinese insurance industry; automobile insurance product design optimization; choice model; conjoint analysis; consumer perception; cost factors; market share; mathematical programming; pricing models; risk factors; Analytical models; Atmospheric measurements; Automobiles; Availability; Companies; Insurance; Particle measurements; Automobile Insurance; Conjoint Analysis; Enumeration Approach; Share of Choice Model;

fLanguage

English

Publisher

ieee

Conference_Titel

Service Operations and Logistics, and Informatics (SOLI), 2012 IEEE International Conference on

Conference_Location

Suzhou

Print_ISBN

978-1-4673-2400-7

Type

conf

DOI

10.1109/SOLI.2012.6273571

Filename

6273571