Hi Piter,

It may be useful to peruse any reports by the Society of Actuaries, The Institute and Faculty and Actuaries as well as The Chartered Insurance Institute. From the point of view of an insurer, you may wish to consider the effects of anti-selection resulting from individuals not renewing their policies. 

The key question is what theory will you use to explain this decision (eg value theory, utility theory)? In an unrelated research, we found that insurers were less willing to take up new technology because they felt they did not have ownership/control of the technology itself (linked here). 

Regards,

Dominic

Article Implementing Automotive Telematics for Insurance Covers of Fleets

thank you Dominic for your valuable information.

There also is a legal component to this question. Could you clarify the focus of your question?

Than you for your question  Paolo F Ricci

i want to conduct research on the usefulness of Third party liability insurance which is compulsory when you buy new vehicle. But After the first year they stop renew the policy. I want to know Why? So i can find the usefulness of TPL. If the number of clients are not renewing the policy then it will be  less useful and vice versa. And what can we do to increase the renew rate ? I want to find answer of this questions. So, i can recommend to the regulatory authority to change in policy terms and condition.

I would be interested in the process of regulation related to the requirement to have a third-party insurance and the strength of penalties for non-compliance. Specifically,  what are the implications of not having a third-party policy and then having an accident? If there are drivers who are not renewing it appears they are making a judgment based on the costs of renewing against not renewing and being caught. In answer to Piter's comment in the UK, for example, you cannot register your vehicle for its annual road licence without insurance. Maybe a central database of vehicles and relevant insurance is a possible solution.