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

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

10102 - Applied mathematics

Projekt

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Návaznosti

O - Projekt operacniho programu

Rok uplatnění

2019

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

EUROPEAN FINANCIAL SYSTEMS 2019

ISBN

9788021093386

ISSN

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e-ISSN

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Počet stran výsledku

6

Strana od-do

650-655

Název nakladatele

Masarykova univerzita

Místo vydání

Brno

Místo konání akce

Brno, CZECH REPUBLIC

Datum konání akce

1. 1. 2019

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000503222600078