First insurance blog post!

HELLO! This is the first post and also a description of what this site will be about. This will be a site about insurance, probably focusing more on the quant side of insurance than other areas such as where to buy insurance; the internet should have many other places where you can search for "buy auto insurance" :-P

However, I do hope to also write about methods how you could get cheaper insurance and the mathematical reasoning behind it. For example, I have heard anecdotally that insurance for a Mercedes Benz is cheaper than unsurance for a Holden Commodore. Why? The anecdote says that "because there are a lot of kids who drive Commodores and do stupid stuff, whereas a Mercedes Benz is driven mostly by older people who are more careful". Would the insurance company really think like that? How about Pr(Crash | Commodore) > Pr(Crash | Mercedes Benz )? Now to make this fit a little better with the insurance model that will be published in the next post: (mean payout for a Commodore) > (mean payout for a Mercedes Benz). However, whether or not this insurance contract princing anecdote is true or not can only be verified with actual data.

Have fun,

Insurance Blog