On the quantification of risk, and the estimation of motor insurance premiums

Abstract

The quantification of risk is very important for the effective management of risk. The quantification or measurement of risk may take place through a mathematical model which is the mathematical process for quantifying risk. It is easy to quantify risk for predictable classes of insurance, but hard for important classes, e.g. catastrophe classes, which may lead to the insurance company's ruin. The first part of this thesis has some discussion on attempts to define risk and risk management also with particular reference to the motor insurance. This thesis then applies generalised linear models for modelling claim size and claim frequency in motor insurance.