Publicação
Transforming motor insurance pricing in the saudi insurance sector : the role of GLMS
| Resumo: | This report investigates the application of Generalized Linear Models (GLMs) pricing techniques in the Saudi Arabian motor insurance market which priorly relies on Burning Cost. In light of the market's recent volatility—most notably the significant losses incurred in 2021 due to a price war—this study explores how modern actuarial methodologies can enhance pricing accuracy and restore profitability. The research addresses the limitations of traditional pricing methods currently used in Saudi Arabia and examines the feasibility and potential advantages of implementing GLMs. Drawing on relevant literature from developed insurance markets, this report evaluates the challenges and opportunities for adopting GLMs in Saudi Arabia. The findings suggest that GLM pricing models could provide notable improvements over existing practices by supporting better risk segmentation, addressing pricing inefficiencies, and potentially enhancing financial stability. Through a detailed analysis of industry data, this report provides insights that are crucial for both insurers and regulators to foster a more sustainable and competitive insurance environment. |
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| Autores principais: | Alsadiq, Ahmed Mohammad J. |
| Assunto: | Generalized Linear Models Saudi Arabian Motor Insurance Market Insurance Pricing Accuracy Modelos Lineares Generalizados Mercado de Seguro Automóvel da Arábia Saudita Precisão na Precificação de Seguros |
| Ano: | 2024 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | This report investigates the application of Generalized Linear Models (GLMs) pricing techniques in the Saudi Arabian motor insurance market which priorly relies on Burning Cost. In light of the market's recent volatility—most notably the significant losses incurred in 2021 due to a price war—this study explores how modern actuarial methodologies can enhance pricing accuracy and restore profitability. The research addresses the limitations of traditional pricing methods currently used in Saudi Arabia and examines the feasibility and potential advantages of implementing GLMs. Drawing on relevant literature from developed insurance markets, this report evaluates the challenges and opportunities for adopting GLMs in Saudi Arabia. The findings suggest that GLM pricing models could provide notable improvements over existing practices by supporting better risk segmentation, addressing pricing inefficiencies, and potentially enhancing financial stability. Through a detailed analysis of industry data, this report provides insights that are crucial for both insurers and regulators to foster a more sustainable and competitive insurance environment. |
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