A causal inference approach to measure price elasticity in Automobile Insurance
作者：
Highlights：
• We outline a novel approach to estimate price elasticity (PE) in insurance.
• We describe the potential pitfalls with the conventional PE estimation approach.
• A real-case study using data from a large Canadian insurer is described in detail.
• We illustrate how the PE estimates can be used to optimize policy premiums.
• Premium optimization involves a trade-off between market-share and profitability.
摘要
•We outline a novel approach to estimate price elasticity (PE) in insurance.•We describe the potential pitfalls with the conventional PE estimation approach.•A real-case study using data from a large Canadian insurer is described in detail.•We illustrate how the PE estimates can be used to optimize policy premiums.•Premium optimization involves a trade-off between market-share and profitability.
论文关键词：Causal inference,Price elasticity,Price optimization,Insurance
论文评审过程：Available online 27 July 2013.
论文官网地址：https://doi.org/10.1016/j.eswa.2013.07.059
