Determination of Risk Factors for Personal Accident Insurance in Iran
Published: 2021
Author(s) Name: Farzaneh Haghighat Nia, Naser Shams Gharneh, Hossein Niavand |
Author(s) Affiliation: Amirkabir University of Technology (Tehran Polytechnic), Tehran, Iran.
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Abstract
Click Here:Access Full TextRisk management is principally used to support against the dangers of unforeseen incidents. According to Central Insurance of Iran (CII), in personal accident insurance, the job is the main criterion for selecting risk classification. Job is the only risk to determine the premium. Thus, misclassification of risks and the insured can lead to significant financial loss for insurance companies, as well as the assured policyholders. This research examines and identifies the factors that affect personal accident insurance in the research area. This study used primary data, which was collected through a questionnaire from the sample units of personal accident insurance managers. In addition to the questionnaire, interviews were used to collect information from 160 managers in eight insurance companies. As for the methodology, the operational definitions of the needed variables, and the exploratory factor analysis or principal components analysis (PCA) from SPSS software were used to test the hypothesis. The result shows that the level of risk according to a job is not sufficient for personal accident insurance; 8 risk factors are significant, therefore, more than 1 factor influences the level of risk in personal accident insurance.
Keywords: Personal Accident Insurance, Risk Factor, Premium, Level of Risk
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