Improving profitability model in insurance industry, considering inflation: the case study of automobile insurance in Iran

Abstract: Pricing is one of the critical practices of insurance industry. The premium
price set by an insurance company must obtain profit for the company
considering the indemnification of the accidents. Also this price must be at
the rate that motivates people to purchase the service.
There are various models with various parameters considered for setting the
premium rate of a specific type of insurance. The focus of this research is
on the non-life insurance in general and on the auto property coverage
insurance in particular. These models may not comply with the way that
insurance companies set their premium rates. The lack of a feasible model
which considers more related parameters to the environment may be the reason.
This research investigates the non-life insurance pricing models and not only
evaluates the existence parameters, but also evaluates the parameters that
must be used in these models in order to make them more compatible with
Iran