Determinants of Claims Recovery Among Writers of Auto Physical Damage Coverage: Empirical Evidence
In an increasingly competitive environment, the successful auto insurer is one that manages its cost in an efficient manner. While the auto insurance claims area does not generate revenue for the firm, it is one that provides the opportunity for cost reductions through its recovery efforts. We examine claims recoveries and identify the determinants associated with higher relative recovery levels. With regression analysis, we find that the more aggressive recovery efforts are exhibited by larger firms, stock insurers, non-affiliated auto insurers, firms that devote greater resources to claims recovery efforts, and firms that have a greater average claim size.
Volume (Year): 23 (2000)
Issue (Month): 1 ()
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