Introduction

Setting insurance policy premiums is the touchstone of the insurance industry. Within the area of actuarial science, companies develop complex statistical and mathematical models to estimate risks and determine the pricing policies (Daykin et al., 1993; Embrechts, 2000; Kaas, Goovaerts, Dhaene, & Denuit, 2008; Landsman & Sherris, 2001; Tsanakas & Desli, 2005; Wang, 2002).

The case of automobile insurance is not an exception in this sense, where the development of risk and pricing models for actuaries has also a long history (David, 2015; Grenander, 1957; Lemaire, 1985). The models can include variables more directly associated with the insured risk itself (vehicle specifications, age, and driver experience) or any other information the company has directly or indirectly acquired, such as payment default probability, expected fraud level, income per capita in the area of the insured party's residence, and so on.