TASK:

Model the number of claims and the claim cost.

Name:

CASCO Motorcycle Insurance in Sweden

Description:

The data for this case study comes from the former Swedish insurance company Wasa, and concerns partial casco insurance, for motorcycles this time. It contains aggregated data on all insurance policies and claims during 1994–1998; the reason for using this rather old data set is confidentiality—more recent data for ongoing business can not be disclosed. The data set contains the following variables (with Swedish acronyms):

- AGARALD: The owners age, between 0 and 99.
- KON: The owners gender, M (male) or K (female).
- ZON: Geographic zone numbered from 1 to 7, in a standard classification of all Swedish parishes. 1 ... Central and semi-central parts of Sweden’s three largest cities, 2 ... Suburbs plus middle-sized cities, 3 ... Lesser towns, except those in 5 or 7, 4 ... Small towns and countryside, except 5–7, 5 ... Northern towns, 6 ... Northern countryside, 7 ... Gotland (Sweden’s largest island)
- MCKLASS: MC class, a classification by the so called EV ratio, defined as (En- gine power in kW × 100) / (Vehicle weight in kg + 75), rounded to the nearest lower integer. The 75 kg represent the average driver weight. The EV ratios are divided into seven classes: 1 ... EV ratio −5, 2 ... EV ratio 6–8, 3 ... EV ratio 9–12, 4 ... EV ratio 13–15, 5 ... EV ratio 16–19, 6 ... EV ratio 20–24, 7 ... EV ratio 25–
- FORDALD: Vehicle age, between 0 and 99.
- BONUSKL: Bonus class, taking values from 1 to 7. A new driver starts with bonus class 1; for each claim-free year the bonus class is increased by 1. After the first claim the bonus is decreased by 2; the driver can not return to class 7 with less than 6 consecutive claim free years.
- DURATION: the number of policy years.
- ANTSKAD: the number of claims.
- SKADKOST: the claim cost.

Source:

- Ohlsson, E. and Johansson, B. (2010) Non-Life Insurance Pricing with Generalized Linear Models. Springer.