Estimating the effect of a change in insurance pricing regime on accidents with endogenous mobility

Georges Dionne () and Benoit Dostie

No 07-11, Cahiers de recherche from HEC Montréal, Institut d'économie appliquée

Abstract: In this paper, we estimate the impact of introducing a bonus-malus system on the probability of having automobile accidents, taking into account contract duration or the client mobility between insurers. We show that the new incentive scheme reduces accident rates of all policyholders when contract duration is taken into account, but does not affect accident rates of movers that shirk the imposed incentive effects of the new insurance pricing scheme.

Keywords: Bonus-malus; contract duration; automobile accident; Poisson distribution; right- and left-censoring; exponential distribution. (search for similar items in EconPapers)
Pages: 26 pages
Date: 2007-09
New Economics Papers: this item is included in nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.hec.ca/iea/cahiers/2007/iea0711_bdostie.pdf (application/pdf)

Related works:
Working Paper: Estimating the Effect of a Change in Insurance Pricing Regime on Accidents with Endogenous Mobility (2007)
Working Paper: Estimating the effect of a change in insurance pricing regime on accidents with endogenous mobility (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iea:carech:0711

Ordering information: This working paper can be ordered from
Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7

The price is Free.

Access Statistics for this paper

More papers in Cahiers de recherche from HEC Montréal, Institut d'économie appliquée Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7. Contact information at EDIRC.
Bibliographic data for series maintained by Patricia Power ().