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.
Keywords: Bayesian and heterogeneous models, Number and cost residuals, Bonus-malus for frequency of claims, average cost per claim, and pure premium.
Volume
27:1
Page
33
Year
1997
Categories
Actuarial Applications and Methodologies
Ratemaking
Classification Plans
Actuarial Applications and Methodologies
Ratemaking
Experience Rating
Financial and Statistical Methods
Loss Distributions
Frequency
Business Areas
Automobile
Personal
Financial and Statistical Methods
Loss Distributions
Severity
Publications
ASTIN Bulletin
