A Non-asymptotic Automobile Bonus-malus System with Varying Transition Rules

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F19%3A00110979" target="_blank" >RIV/00216224:14560/19:00110979 - isvavai.cz</a>
Result on the web
<a href="https://munispace.muni.cz/library/catalog/book/1273" target="_blank" >https://munispace.muni.cz/library/catalog/book/1273</a>
DOI - Digital Object Identifier
—

Result language
angličtina
Original language name
A Non-asymptotic Automobile Bonus-malus System with Varying Transition Rules
Original language description
In this paper, we examine a non-asymptotic criterion for a bonus-malus system in vehicle insurance, and we combine it with varying transition rules. Policies are in effect only during a finite number of insurance periods. If most of the policies are far from a stationary state, it is useful to change the criterion so that to consider the rating error for new policies and policies of medium age too. Therefore we use a bonus-malus system based on minimization weighted average of the expected square rating errors for selected insurance periods. We calculate the relative premium associated with each level of the bonus-malus system. Finally, we compare our proposed bonus-malus system with the system from the Czech Insurance Company. We find that the proposed examples of non-asymptotic bonus-malus system are more effective than the current system used by the Czech Insurance Company.
Czech name
—
Czech description
—

Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Similar results(10)