Relative premium in vehicle insurance
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F14%3A00077209" target="_blank" >RIV/00216224:14560/14:00077209 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Relative premium in vehicle insurance
Original language description
Very important task of the actuary is to create a fair tariff structure. This structure has to fairly divide the burden of claims among policyholders. The subject of this paper is bonus-malus system in vehicle insurance. This system penalizes drivers responsible for accidents and rewards the drivers for claim-free years. First the long term behavior of BM system is examined. A stationary distribution of the drivers is calculated based on Markov chains. Then the relative premium associated with each level of BM system is calculated. For this purposes, quadratic loss function and Bayesian approach are used. Finally, we compare the calculated relative premium to the relative premium from Czech Insurance Company.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
AE - Management, administration and clerical work
OECD FORD branch
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Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2014
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
European financial systems 2014. Proceedings of the 11th international scientific conference
ISBN
9788021071537
ISSN
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e-ISSN
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Number of pages
5
Pages from-to
295-299
Publisher name
Masarykova univerzita
Place of publication
Brno
Event location
Lednice, Czech Republic
Event date
Jan 1, 2014
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
000350701500039