re:Elasticity of Demand

Robert Bernstein ( (no email) )
Thu, 4 Dec 97 8:06:34 PST

If you find anything on the elasticity of demand for auto insurance could
you please let me know. We are always attempting to estimate the change
in demand for a lower cost policy, legislation for which is usually
proposed in one form or another almost every year.

Thanks.

----------------------[Reply - Original Message]----------------------

Sent by:"Mr. CJ Townsend CUUKMAIL CU Canada"

Can anyone point to published literature that looks at the elasticity of
demand
for property/casualty insurance products in the face of price changes? I
am
primarily interested in company specific elasticity, not industrywide
demand,
because industrywide the product is often viewed as compulsory. We are
attempting to do internal studies based on short term changes in
retention/new
business rates immediately after rate changes, but would like to validate
our
work/methodology with external information. Thanks.

CJ Townsend
CUCAN, VP & Actuary

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