Contributions from Spatial Models to Non-Life Insurance Pricing: An Empirical Application to Water Damage Risk

This paper explores the application of spatial models to non-life insurance data focused on multi-risk home branch. In pricing modelling and rating process, information should be considered by actuaries managers because frequencies claim sizes may vary region premium different considering this variable. addition, it is relevant examine dependence due fact that frequency claims in neighbouring regions often expected more closely related than those far from each other. paper, a comparison between models, such as autoregressive (SAR), error model (SEM), Durbin (SDM), non-spatial has been developed. The used for analysis are portfolio located Spain, which we have selected peril water coverage.