Improving Home Insurance Ratemaking with Geographically Weighted Poisson Regression (GWPR) Model: Assessing Water Damage Risk

IF 2 4区社会学 Q3 ENVIRONMENTAL STUDIES Applied Spatial Analysis and Policy Pub Date : 2025-02-11 DOI:10.1007/s12061-024-09632-4

Maria-Victoria Rivas-Lopez, Mariano Matilla-García, Roman Minguez-Salido, Miguel Angel Bravo-Ovalle

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Abstract

This study examines the consideration of spatial heterogeneity in the development of Home Insurance rates, specifically focusing on water damage throughout Spain. This focus arises from the need to establish a methodology that not only improves ratemaking procedures for water damage but also acknowledges the potential impacts of climate change, allowing differentiation in the effect of variables such as rainfall depending on the location and frequency of water claims. By using the GWPR model, spatial heterogeneity is taken into account and the ratemaking process is enhanced by identifying spatial clusters related to the frequency of water damage claims. Moreover, an empirical development has been carried out employing a database of home insurance data for water coverage in the Spanish territory. The variables selected in this process are not only associated with weather, but also with characteristics of the policies, housing, and socio-economic conditions of the policyholders.

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来源期刊

Applied Spatial Analysis and Policy Multiple-

CiteScore

3.80

自引率

5.30%

发文量

期刊介绍： Description The journal has an applied focus: it actively promotes the importance of geographical research in real world settings It is policy-relevant: it seeks both a readership and contributions from practitioners as well as academics The substantive foundation is spatial analysis: the use of quantitative techniques to identify patterns and processes within geographic environments The combination of these points, which are fully reflected in the naming of the journal, establishes a unique position in the marketplace. RationaleA geographical perspective has always been crucial to the understanding of the social and physical organisation of the world around us. The techniques of spatial analysis provide a powerful means for the assembly and interpretation of evidence, and thus to address critical questions about issues such as crime and deprivation, immigration and demographic restructuring, retailing activity and employment change, resource management and environmental improvement. Many of these issues are equally important to academic research as they are to policy makers and Applied Spatial Analysis and Policy aims to close the gap between these two perspectives by providing a forum for discussion of applied research in a range of different contexts Topical and interdisciplinaryIncreasingly government organisations, administrative agencies and private businesses are requiring research to support their ‘evidence-based’ strategies or policies. Geographical location is critical in much of this work which extends across a wide range of disciplines including demography, actuarial sciences, statistics, public sector planning, business planning, economics, epidemiology, sociology, social policy, health research, environmental management. FocusApplied Spatial Analysis and Policy will draw on applied research from diverse problem domains, such as transport, policing, education, health, environment and leisure, in different international contexts. The journal will therefore provide insights into the variations in phenomena that exist across space, it will provide evidence for comparative policy analysis between domains and between locations, and stimulate ideas about the translation of spatial analysis methods and techniques across varied policy contexts. It is essential to know how to measure, monitor and understand spatial distributions, many of which have implications for those with responsibility to plan and enhance the society and the environment in which we all exist. Readership and Editorial BoardAs a journal focused on applications of methods of spatial analysis, Applied Spatial Analysis and Policy will be of interest to scholars and students in a wide range of academic fields, to practitioners in government and administrative agencies and to consultants in private sector organisations. The Editorial Board reflects the international and multidisciplinary nature of the journal.