Author/Authors :
kirkağaç, murat hacettepe university - faculty of science - department of actuarial science, Ankara, Turkey , karadağ erdemir, övgücan hacettepe university - faculty of science - department of actuarial science, Ankara, Turkey , gençtürk, yasemin hacettepe university - faculty of science - department of actuarial science, Ankara, Turkey
Title Of Article :
THE ANALYSIS OF THE COMPREHENSIVE INSURANCE DEMAND FOR TURKEY USING UTILITY THEORY AND SYSTEM SIMULATION
Abstract :
In this study, the demand for comprehensive insurance is analysed using utility theory and system simulation. A simulation study is performed to assess the behaviour of individuals with different income levels for the demand of comprehensive insurance. Simulation assumptions and input-output variables are determined using the real data set from a Turkish insurance company and the report about the insurance activities in Turkey for year 2014. The effects of income level, expected claim severity and premium level on the demand for insurance are investigated. It is concluded that while an increase in income level and expected claim severity causes an increase in the demand, an increase in premium level causes a decrease in demand.
NaturalLanguageKeyword :
Utility function , Expected utility criterion , System simulation , The demand for comprehensive insurance
JournalTitle :
Anadolu University Journal of Science and Technology. A : Applied Sciences and Engineering
