Bonus-malus Systems: Theory and Practice

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F11%3A39892602" target="_blank" >RIV/00216275:25410/11:39892602 - isvavai.cz</a>
Result on the web
—
DOI - Digital Object Identifier
—

Result language
angličtina
Original language name
Bonus-malus Systems: Theory and Practice
Original language description
Bonus-malus system is an effective tool for managing risk in an emergency vehicle insurance. In this article we will focus on the possibilities of using Markov chains to derive the expected risk premium in the bonus-malus system. We consider a homogeneous, finite, indecomposable and aperiodic Markov chain, where there is a limit transition probability independent of the initial state. In a practical example in the end we will demonstrate the evolution of the expected risk premium in several consecutiveyears, depending on various options to the insertion of new policyholders in insurance classes and the associated threat of insolvency.
Czech name
—
Czech description
—

Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
BB - Applied statistics, operational research
OECD FORD branch
—

Project
<a href="/en/project/GA402%2F09%2F1866" target="_blank" >GA402/09/1866: Modelling, Simulations and Management of Insurance Risks</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2011
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Similar results(10)