Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Propitious selection in the vehicle insurance market
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics Borlänge.
2010 (English)Report (Other academic)
Abstract [en]

By combining Contract Theory and vehicle positioning techniques, insurance companies can replace some of the proxies for risk by actual traffic behavior when pricing the premium. A mechanism design model is used to illustrate that Usage Based Insurance (UBI) can separate risks in terms of driving behavior. This makes it possible to reward safe driving habits since the pricing scheme better reflects the accident risk. The conclusion is that UBI provides an actuarially fair premium for the insuree. It is further an efficient instrument to separate risks for the insurer since it reduces the information asymmetries highlighted in this paper.

Place, publisher, year, edition, pages
Borlänge: Statens väg- och transportforskningsinstitut, 2010. , p. 25
Series
CTS Working Paper ; 2010:2
Keywords [en]
Insurance, Car, Risk, Risk taking, Driver, Mathematical model
National Category
Economics
Research subject
Road: Traffic safety and accidents, Road: Accident costs
Identifiers
URN: urn:nbn:se:vti:diva-713OAI: oai:DiVA.org:vti-713DiVA, id: diva2:669413
Available from: 2013-12-03 Created: 2013-12-03 Last updated: 2014-05-16Bibliographically approved

Open Access in DiVA

fulltext(182 kB)298 downloads
File information
File name FULLTEXT01.pdfFile size 182 kBChecksum SHA-512
f4883b71199cd3b2a1d82008c1de7d5e6e43655d36117db9960ab38507e0ac74f539c5e110a552ed3575581b0b77989e36fd465cff18f4d0ac8a02ec9f257b43
Type fulltextMimetype application/pdf

Search in DiVA

By author/editor
Arvidsson, Sara
By organisation
Transport economics Borlänge
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 298 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 360 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf