Faculty Advisor

Abraham, Jon P

Abstract

This project applies mathematical techniques to design a process by which an insurance company can optimize revenue. The main objective is to categorize client portfolios using K-means algorithm to segment the market. After clusters are obtained, a logistic regression is applied to determine the optimal premium increase/decrease that maximizes the revenue for each cluster, based its specific characteristics. Applying the optimal premium change to each customer subgroup, the firm will increase its overall revenue.

Publisher

Worcester Polytechnic Institute

Date Accepted

December 2007

Major

Management Engineering

Major

Actuarial Mathematics

Project Type

Major Qualifying Project

Accessibility

Unrestricted

Advisor Department

Mathematical Sciences

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