The Practical Replacement of a Bonus-Malus System
نویسندگان
چکیده
منابع مشابه
Measuring sensitivity in a bonus–malus system
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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چکیده ندارد.
15 صفحه اولInsurance as a Giffen Good under a Bonus-Malus System and its Effect on Adverse Selection
A bonus-malus system (BMS) serves not only as a fair rating system but also as a mechanism to avoid adverse selection by developing an applied premium based on the claim experience of a policy. This paper analyzes how a BMS could work for these two concepts: achieving fairness among policies and mitigating adverse selection. The purpose is to understand how the transition rules, the number of c...
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ژورنال
عنوان ژورنال: ASTIN Bulletin
سال: 2001
ISSN: 0515-0361,1783-1350
DOI: 10.2143/ast.31.2.1008