Risk exists in every aspect of a business, as it cannot be eliminated but rather reduced to an attainable level through the utilization of effective risk assessment techniques. Risk impacts people differently, some can be seen as risk-seeking while the majority are risk-averse. For the insurance industry in particular, risk is traded and transferred to the insurance providers as insurance providers offer a shield from the exposure to risk consequences and the likelihood of loss, therefore, escalating the risk from the insured entity to the insurer for a given premium. In this research, a modern model to risk classification will be proposed for property lines insurance. The proposed model will be validated via data collected from case studies of an insurance company in the United Arab Emirates (UAE). The model is expected to serve as a tool that helps provide better estimates of risk for various properties.
Risk Classification and Prediction: A Logistic Regression Approach for Analyzing Property Risk Classes in Insurance Companies
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