This project studied the new assigned risk plan for Massachusetts automobile insurance. The current method is a simple lottery in which each company's voluntary market share determines its probability of receiving the next high-risk driver. Results show that a dynamic method that adjusts assignment probabilities according to each company's current residual market share can reduce volatility costs by 50% for all insurance companies in the state.

• This report represents the work of one or more WPI undergraduate students submitted to the faculty as evidence of completion of a degree requirement. WPI routinely publishes these reports on its website without editorial or peer review.

Creator

• Bui, Vonda Elizabeth
• Yu, Ying Fang

Publisher

• Worcester Polytechnic Institute

Identifier

• 05D317M

Advisor

• Heinricher, Arthur C.
• Abraham, Jon P.

Year

• 2005

Date created

• 2005-01-01

Resource type

• Major Qualifying Project

Major

• Actuarial Mathematics

Rights statement

• In Copyright

License

• All rights reserved