Sains Malaysiana 37(4):  413-420 (2008)

 

Construction of Insurance Scoring System using Regression Models

(Pembinaan Sistem Skor Insurans melalui Model Regresi)

 

Noriszura Ismail & Abdul Aziz Jemain

Pusat Pengajian Sains Matematik

Fakulti Sains dan Teknologi, Universiti Kebangsaan Malaysia

43600 UKM Bangi, Selangor D.E. Malaysia

 

 

Received :  26 September 2007 / Accepted: 4 January 2008

 

 

ABSTRACT

This study suggests the regression models of Lognormal, Normal and Gamma for the construction of an insurance scoring system. Comparison between Lognormal, Normal and Gamma regression models were also carried out, and the comparison were centered upon three main elements; fitting procedures, parameter estimates and structure of scores. The main advantage of utilizing a scoring system is that the system may be used by insurers to differentiate between good and bad insureds and thus allowing the profitability of insureds to be predicted.

 

Keywords: Profitability; regression models; scoring system

 

 

ABSTRAK

Model regresi Lognormal, Normal dan Gamma dicadang untuk membina suatu sistem skor insurans. Perbandingan di antara model regresi Lognormal, Normal dan Gamma juga dilaksanakan, dan perbandingan ini tertumpu kepada tiga elemen utama; prosedur penyuaian, penganggar parameter dan struktur skor. Kelebihan utama sistem skor adalah ia boleh diterap oleh syarikat insurans untuk membezakan insud yang baik dan kurang baik dan membenarkan peramalan keberuntungan insud dilakukan.

 

Kata kunci: Keberuntungan; model regresi; sistem skor

 

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