Summary |
This book is devoted to the analysis of the number of claims filed by an insured driver over time, Property and liability motor vehicle coverage is broadly divided into first and third party coverage. First party coverage provides protection in the event the vehicle owner is responsible for the accident and protects him and his property. Third party coverage provides protection in the event the vehicle owner cause harm to another party, who recovers their cost from the policyholder. First party coverages may include first party injury benefits such as medical expenses, death payments and comprehensive coverages.
A third party liability coverage is required in most countries for a vehicle to be allowed on the public road network. The compulsory motor third party liability insurance represents a considerable share of the yearly nonlife premium collection in developed countries. This share becomes even more prominent when first party coverages are considered (such as medical benefits, uninsured or underinsured motorist coverage, and collision and other than collision insurance). Moreover, large data bases recording policyholders’ characteristics as well as claim histories are maintained by insurance companies. The economic importance and the availability of detailed information explain why a large body of the nonlife actuarial literature is devoted to this line of business.
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