Insurance companies minimize commercial loss by reducing the probability of a loss incident. The Hanover Insurance Group is modifying their existing risk evaluation system to create an objective process. Based on this study, a weighted system was developed to calculate a quantitative risk score for property evaluations. An electronic survey was sent to Hanover employees and historical loss data for Hanover was analyzed. Property evaluation question weights were created from the collected data using a multiplication method. This proved to be the best solution for Hanover, offering the most dynamic question weight distribution. The team recommended that Hanover should carry out the method for other lines of insurance.

• This report represents the work of one or more WPI undergraduate students submitted to the faculty as evidence of completion of a degree requirement. WPI routinely publishes these reports on its website without editorial or peer review.

Creator

• Mulhern, John K
• Wilfong, Katelin S
• McCormack, Katherine M

Publisher

• Worcester Polytechnic Institute

Identifier

• E-project-011211-174038

Advisor

• Zhao, Wanli
• Wang, Tsung-Yi

Year

• 2011

Sponsor

• The Hanover Insurance Group

Date created

• 2011-01-12

Resource type

• Major Qualifying Project

Major

• Management Engineering
• Management

Rights statement

• In Copyright