The Eff ect of the Introduction of a “Pay Per Use“ Option within Motor TPL Insurance
In this paper the effects of the introduction of the so called “pay per use” -insurance products are examined. These products collect data of mileage of kilometers driven by policy holders. As a result of this data, policy holders can get a refund on the insurance-premium paid. Since there is a pos...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Warsaw
2014-05-01
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| Series: | Journal of Banking and Financial Economics |
| Subjects: | |
| Online Access: | https://jbfe.wz.uw.edu.pl/resources/html/article/details?id=195734 |
| _version_ | 1797226861735968768 |
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| author | Stefan Trappl Karl Zehetner Robert Pichler |
| author_facet | Stefan Trappl Karl Zehetner Robert Pichler |
| author_sort | Stefan Trappl |
| collection | DOAJ |
| description | In this paper the effects of the introduction of the so called “pay per use” -insurance products are examined. These products collect data of mileage of kilometers driven by policy holders. As a result of this data, policy holders can get a refund on the insurance-premium paid. Since
there is a positive correlation between mileage and the risk of causing an accident the refund
is granted to low-mileage drivers, so in theory the “pay per use” product is more attractive to
low-mileage drivers than to long-distance drivers. The authors examine empirical evidence
to fi nd out whether or not it is mainly low-mileage-drivers who choose the “pay per use” product. Secondly, the authors examine whether there are other signifi cant differences between characteristics of “pay per use” policy-holders and “traditional” policy- holders. Therefore a random sample of 4,000 car-insurance – clients (2,000 “pay per use” policy-holders and 2,000 “traditional” policy-holders) is reviewed. In addition the effects of the introduction of “pay per use” products are discussed, in case of a selection effect between low- and high -mileage drivers is observed. |
| first_indexed | 2024-04-24T14:31:38Z |
| format | Article |
| id | doaj.art-e937cbf7209e4317992625dc6c7241ae |
| institution | Directory Open Access Journal |
| issn | 2353-6845 |
| language | English |
| last_indexed | 2024-04-24T14:31:38Z |
| publishDate | 2014-05-01 |
| publisher | University of Warsaw |
| record_format | Article |
| series | Journal of Banking and Financial Economics |
| spelling | doaj.art-e937cbf7209e4317992625dc6c7241ae2024-04-03T02:10:39ZengUniversity of WarsawJournal of Banking and Financial Economics2353-68452014-05-0120141(1)738710.7172/2353-6845.jbfe.2014.1.5The Eff ect of the Introduction of a “Pay Per Use“ Option within Motor TPL InsuranceStefan Trappl0Karl Zehetner1Robert Pichler2FHWien University of Applied Sciences of WKW, AustriaFHWien University of Applied Sciences of WKW, AustriaFHWien University of Applied Sciences of WKW, AustriaIn this paper the effects of the introduction of the so called “pay per use” -insurance products are examined. These products collect data of mileage of kilometers driven by policy holders. As a result of this data, policy holders can get a refund on the insurance-premium paid. Since there is a positive correlation between mileage and the risk of causing an accident the refund is granted to low-mileage drivers, so in theory the “pay per use” product is more attractive to low-mileage drivers than to long-distance drivers. The authors examine empirical evidence to fi nd out whether or not it is mainly low-mileage-drivers who choose the “pay per use” product. Secondly, the authors examine whether there are other signifi cant differences between characteristics of “pay per use” policy-holders and “traditional” policy- holders. Therefore a random sample of 4,000 car-insurance – clients (2,000 “pay per use” policy-holders and 2,000 “traditional” policy-holders) is reviewed. In addition the effects of the introduction of “pay per use” products are discussed, in case of a selection effect between low- and high -mileage drivers is observed.https://jbfe.wz.uw.edu.pl/resources/html/article/details?id=195734insurancepay per usepay as you driveadverse selectionselection effects |
| spellingShingle | Stefan Trappl Karl Zehetner Robert Pichler The Eff ect of the Introduction of a “Pay Per Use“ Option within Motor TPL Insurance Journal of Banking and Financial Economics insurance pay per use pay as you drive adverse selection selection effects |
| title | The Eff ect of the Introduction of a “Pay Per Use“ Option within Motor TPL Insurance |
| title_full | The Eff ect of the Introduction of a “Pay Per Use“ Option within Motor TPL Insurance |
| title_fullStr | The Eff ect of the Introduction of a “Pay Per Use“ Option within Motor TPL Insurance |
| title_full_unstemmed | The Eff ect of the Introduction of a “Pay Per Use“ Option within Motor TPL Insurance |
| title_short | The Eff ect of the Introduction of a “Pay Per Use“ Option within Motor TPL Insurance |
| title_sort | eff ect of the introduction of a pay per use option within motor tpl insurance |
| topic | insurance pay per use pay as you drive adverse selection selection effects |
| url | https://jbfe.wz.uw.edu.pl/resources/html/article/details?id=195734 |
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