The partial damage loss cover ratemaking of the automobile insurance using generalized linear models

Abstract: It is illustrated a methodology to compute the pure premium for the automobile insurance (claim frequency and severity) using generalized linear models. It is obtained the pure premium for the partial damage loss cover (PPD) using a set of automobile insurance policies with an exposition of a year. It is found that the most influential variables in the claim frequency are the car production year, the insured's age, and the region's subscription policy and the most influential variables in the claim severity are the car's value, type and make and the insured's gender.