Modeling premium growth in the Malaysian Motor Insurance Industry

Abstract

The motor insurance industry came into the limelight since the enforcement of mandatory motor insurance coverage in 1959 This paper uses a modeling technique to ascertain the various components and parameters that affect the change in premiums receIved by the entire industry, or a segment of it. Once these components & parameters are identified, the actual growth of new premiums can be derived by extrapolating the components and parameters in one or more expressions (or commonly referred to as a formula). These expressions could be useful in forecasting the future market dynamics of the motor Insurance Industry.