Survival Analysis Of The Average Time To Handling A Claim In The Insurance Industry: A Case Study Of An Automobile Insurance Company In Ghana

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June 2015
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Motor Insurance provides protection for vehicles that operate on the roads in Ghana and it is mandatory. A large sample from an insurance data with a significant proportion of censored observations was used to determine the average time it takes for losses to occur and be paid by an insurance company in Ghana using the Kaplan-Meier approach. An analysis of this portfolio presented using the Cox proportional hazard model to determine if the type of insurance affects the time it takes for a claim to be paid and to establish which variables contribute significantly to the time for a claim to be settled. The study revealed that age, gender, marital status, are significant risk factors that affect the occurring of a loss but not significant in the payment of claims using the log rank test and Cox proportional hazards regression model. Type of policy and type of vehicle were significant factors that influence the survival duration of settling claims. This clearly indicates that in the quoting (calculation) of premiums these risk factors are considered in Ghana.
A thesis submitted to the Department of Mathematics, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the Degree of Master of Science in Industrial Mathematics,