Faculty Advisor

Wang, Tsung-Yi

Faculty Advisor

Zhao, Wanli

Abstract

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.

Publisher

Worcester Polytechnic Institute

Date Accepted

January 2011

Major

Management

Major

Management Engineering

Project Type

Major Qualifying Project

Accessibility

Unrestricted

Advisor Department

Business

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