Browsing by Author "Nimo, Nicholas"

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    Decision Tree as a Predictive Modeling Tool for General Insurance Claims
    (March, 2016) Nimo, Nicholas
    The study explored the relationship between the risk factors of policyholders of an insurance company and the occurrence of claim. These relationships were investigated by using decision trees developed by Breiman et al (1984) also referred to as CART analysis. The R software (Rattle) version 0.99.483 was used to analyze the data using the rpart component.The Analysis corroborated the view held by Yeo et al. (2001) and Mayhew et al. (2003) that a major risk factor that a ects the occurrence of claim is the age of policyholders and also proved and ascertained Tranter and Warn (2008) views, that a group of young drivers have higher risk of accident than the same group of older drivers. Most importantly the analysis revealed that the prediction of whether a policyholder would make a claim in the coming year depends in part and in whole on the claim history of the policyholder.