Bonus-malus Systems with Varying Deductibles

Sandra Pitrebois, Jean-François Walhin and Michel Denuit

ASTIN Bulletin, 2005, vol. 35, issue 1, 261-274

Abstract: Bonus-malus systems typically lead to high maluses when claims at fault are reported. Such penalties are often difficult to implement in practice. It is shown in this paper that this drawback may be avoided by combining a posteriori premium corrections with a deductible varying according to the level occupied in the scale.

Date: 2005
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