An alternative approach to bonus malus

Under the assumptions of an open portfolio, i.e., considering that a policyholder can transfer his policy to another insurance company and continuous arrival new policyholders into portfolio which be placed any bonus classes not only in starting class, we developed model (Stochastic Vortices Model) estimate Long Run Distribution for Bonus Malus System. These hypothesis render quite representative reality. With obtained Distribution, few optimal scales were calculated, such as Norberg’s (1979), Borgan, Hoem’s (1981), Gilde Sundt’s (1989) Andrade e Silva’s (1991). To compare our results, since this was rst application model, used Classic Model Open by Centeno Silva (2001). The results Stochastic are highly similar different from those Model. Besides distribution various derived assuming entrances followed adequate stochastic models.