Reduction of Risk Factors in Risk Assessment: An Identification Tree Approach

Abstract—The paper proposes a unique procedure to reduce risk factors in risk assessment. It offers a variant of decision tree called Identification tree for reducing number of risk factors used in assessment. The model, which uses auto insurance as a case study, employs historical evidences of different vehicles as risk factors. The work offers reduction of original risk factors from a set of twenty three to a reduced set of nine risk factors. The model was validated using real time and industry specific data.