Risk profiles and the likelihood of car accidents in Bolivia

Abstract

The following honours thesis analyzes a database of reported car accidents with a total of 381,409 observations. The database compiled by the insurance company “La Boliviana Ciacruz S.A” has a timeline of 10 years from 2006 to 2016. The main purpose of the thesis is to find risk profiles that characterize certain clients’ vehicles and expose how much riskier these clients’ vehicles are compared to others. Comparative tables have been developed in order to make the analysis easier to read. Furthermore, the final results of the thesis raise the question of whether the risk profiles created in this thesis act accordingly with their respective premiums.