Bonus-malus Systems in a Deregulated Environment: Forecasting Market Shares Using Diffusion Models
نویسندگان
چکیده
منابع مشابه
Bonus-malus Systems in a Deregulated Environment: Forecasting Market Shares Using Diffusion Models
In a deregulated insurance market, insurance carriers have an incentive to be innovative in their pricing decisions by segmenting their portfolios and designing new bonus-malus systems (BMS). This paper examines the evolution of market shares and claim frequencies in a two-company market, when one insurer breaks off the existing stability by introducing a super-discount class in its BMS. Severa...
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In performing Bayesian analysis of a bonus–malus system (BMS) it is normal to choose a parametric structure, π0(λ), in the insurer’s portfolio. According to Bayesian sensitivity analysis the structure function can be modelled by specifying a class Γ of priors instead of a single prior. In this paper, we examine the ranges of the relativities, i.e. δ = E[λπ(λ|data)]/E[λπ(λ)], π ∈ Γ . We illustra...
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In an earlier paper, we showed that, in a multi-period setting (but with no multi-period commitment) with two client types (adverse selection) and a competitive insurer environment, a comparasin between periodic repetitions of the classic Rothschild-Stiglitz separating equilibrium contract menu and a second contract based on Bayesian learning (which we identify as a bonus-malus contract) yields...
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ژورنال
عنوان ژورنال: ASTIN Bulletin
سال: 2005
ISSN: 0515-0361,1783-1350
DOI: 10.1017/s0515036100014173