Proceedings of the 3rd International Conference on Bigdata Blockchain and Economy Management, ICBBEM 2024, March 29–31, 2024, Wuhan, China

Research Article

An Empirical Study on the Factors Affecting Life Insurance Charge Premiums

Download10 downloads
  • @INPROCEEDINGS{10.4108/eai.29-3-2024.2347316,
        author={Jingzhi  Zhang},
        title={An Empirical Study on the Factors Affecting Life Insurance Charge Premiums},
        proceedings={Proceedings of the 3rd International Conference on Bigdata Blockchain and Economy Management, ICBBEM 2024, March 29--31, 2024, Wuhan, China},
        publisher={EAI},
        proceedings_a={ICBBEM},
        year={2024},
        month={6},
        keywords={insurance charge multiple linear regression model factor analysis comparative analysis},
        doi={10.4108/eai.29-3-2024.2347316}
    }
    
  • Jingzhi Zhang
    Year: 2024
    An Empirical Study on the Factors Affecting Life Insurance Charge Premiums
    ICBBEM
    EAI
    DOI: 10.4108/eai.29-3-2024.2347316
Jingzhi Zhang1,*
  • 1: Guizhou University of Finance and Economy
*Contact email: 2218277049@qq.com

Abstract

Predicting an individual's annual insurance premium can help insurance companies evaluate risk and pricing more accurately, thus calculating insurance costs more effectively. With this valuable information, analysts can have a better understanding of consumers' spending habits and the impact on their premium payments. In this paper, the linear regression model is used to construct the regression equation between the influencing factors to find the correlation between each factor and the insurance charge. Moreover, through factor analysis, the most important factor named ‘Physique health factors’ affecting insurance charges are found. Finally, through comparative analysis, the most critical influencing factors for large insurance charges and small insurance charges are found, which are the presence or absence of a bad appetite factor and Physical health factors. Understanding the patterns in this analysis is crucial for insurance companies as they need to ensure that their insurance fees cover potential claims and other expenses while also staying competitive and attracting more customers. Additionally, predicting an individual's annual insurance premium can help individuals understand their insurance needs and budget, making more informed decisions.