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Allowance for cost of claims in bonus-malus systems

Jean Pinquet

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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.; and pure premium (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (21)

Published in ASTIN Bulletin, 1997, 27 (1), pp.33-57

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