Topic
Bonus-malus
About: Bonus-malus is a research topic. Over the lifetime, 98 publications have been published within this topic receiving 1962 citations.
Papers published on a yearly basis
Papers
Book•
30 Apr 1995
TL;DR: In this paper, the authors define a bonus-malus system and evaluate its suitability for the claim number distribution problem and propose an optimal bonus-Malus system with a high deductibility.
Abstract: List of Figures. List of Tables. Preface. Part I: Introduction -- Models for Claim Number Distributions. 1. Introduction -- Definition of a Bonus-Malus System. 2. A Typical Bonus-Malus Evolution: the Belgian Case. 3. Models for the Claim Number Distribution. Appendix I. Part II: Evaluation of Bonus-Malus Systems. 4. Tool #1: The Relative Stationary Average Level. 5. Tool #2: The Coefficient of Variation of the Insured's Premium. 6. Tool #3: The Elasticity of the Bonus-Malus System. 7. Tool #4: The Average Optimal Retention. 8. An Index of Toughness. 9. Comments for Specific Countries. Rate of Convergence. Appendix II. Part III: The Design of an Optimal Bonus-Malus System. 10. Construction of an Optimal System. Expected Value Principle. 11. Other Loss Functions. Other Premium Calculation Principles. 12. Penalization of Overcharges. 13. Allowance for the Severity of Claims. 14. The Effect of Expense Loadings. Part IV: An Alternative Proposal: a High Deductible. 15. A High Deductibe System. 16. Empirical Determination of a Deductible. References. Author Index. Subject Index. Main Notations.
357 citations
TL;DR: In this article, the authors developed a statistical model that adequately integrates risk classification and experience rating, and proposed a bonus-malus system which integrates a priori and a posteriori information on an individual basis, and insurance premium tables are derived as a function of time, past accidents and significant variables in the regression.
Abstract: Automobile insurance is an example of a market where multi-period contracts are observed. This form of contract can be justified by asymmetrical information between the insurer and the insured. Insurers use risk classification together with bonus-malus systems. In this paper we show that the actual methodology for the integration of these two approaches can lead to inconsistencies. We develop a statistical model that adequately integrates risk classification and experience rating. For this purpose we present Poisson and negative binomial models with regression component in order to use all available information in the estimation of accident distribution. A bonus-malus system which integrates a priori and a posteriori information on an individual basis is proposed, and insurance premium tables are derived as a function of time, past accidents and the significant variables in the regression. Statistical results were obtained from a sample of 19,013 drivers.
182 citations
Book•
31 Jul 1985
TL;DR: The negative binomial model was used in the construction of an Optimal Bonus-Malus System as mentioned in this paper, which was used to evaluate the effect of expense loadings on the performance of a bonus-malus system.
Abstract: 1 Belgium.- 2 Europe.- 3 North America.- 4 Statistical Bases.- 5 Number or Amount of Claim?.- 6 Claim Frequency, Average Cost per Claim, and Pure Premium.- 7 Criticism of the Belgian Tariff.- 8 Selection of the Significant Variables.- 9 Use of the Results of a Sample Survey.- 10 Criticism of Regression Analysis Selection Methods.- 11 Application: Improvement in Underwriting Procedures.- 12 Introduction: The Negative Binomial Model.- 13 Construction of an Optimal Bonus-Malus System.- 14 Other Loss Functions: Other Premium Calculation Principles.- 15 Penalization of Overcharges.- 16 Allowance for Severity of Claims.- 17 Efficiency Measures of a Bonus-Malus System.- 18 Analysis of the Hunger for Bonus.- 19 The Effect of Expense Loadings.- 20 Epilogue: Construction of The New Belgian Bonus-Malus System.- 21 The Main Statistical Methods.- 22 An Example.- References.- About the Author.
165 citations
Posted Content•
TL;DR: In this paper, a bonus-malus system for the pure premium of insurance contracts, from a rating based on their individual characteristics, is presented, that are drawn from a French data base of automobile insurance contracts.
Abstract: The objective of this paper is to make allowance for cost of claims in experience rating. We design here a bonus-malus system for the pure premium of insurance contracts, from a rating based on their individual characteristics. Empirical results are presented, that are drawn from a French data base of automobile insurance contracts.
97 citations
TL;DR: This paper will cover the bonus-malus system in automobile insurance, which is based on the distribution of the number of car accidents, and the modelling and fitting of that distribution are considered.
Abstract: In this paper, we will cover the bonus-malus system m automobile insurance. Bonus-malus systems are based on the distribution of the number of car accidents Therefore, the modelling and fitting of that dlsmbuhon are considered. Fitting of data Js done using the Polsson mverse Gaussmn distribution, which shows a good fit Building the bonus system is done by minimizing the insurer's risk, according to LEMA~RE'S (1985) bonus system.
86 citations
Related Topics (5)
Performance Metrics
| Year | Papers |
|---|---|
| 2021 | 6 |
| 2020 | 10 |
| 2019 | 4 |
| 2018 | 7 |
| 2017 | 1 |
| 2016 | 4 |