Student Work

 

Estimating the cost of volatility in an assigned risk plan Public

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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.
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  • 05D317M
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Year
  • 2005
Date created
  • 2005-01-01
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Permanent link to this page: https://digital.wpi.edu/show/h702q950z