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A Comparative Analysis of 30 Bonus-Malus Systems

Published online by Cambridge University Press:  29 August 2014

Jean Lemaire  and
Hongmin Zi
Jean Lemaire*
Affiliation:
Wharton School, University of Pennsylvania
Hongmin Zi*
Affiliation:
Wharton School, University of Pennsylvania
*
Department of Insurance and Risk Management, Wharton School, University of Pennsylvania, 3641 Locust Walk, Philadelphia, PA 19104-6218, U.S.A.
Department of Insurance and Risk Management, Wharton School, University of Pennsylvania, 3641 Locust Walk, Philadelphia, PA 19104-6218, U.S.A.
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Abstract

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The automobile third party insurance merit-rating systems of 22 countries are simulated and compared, using as main tools the stationary average premium level, the variability of the policyholders' payments, their elasticity with respect to the claim frequency, and the magnitude of the hunger for bonus. Principal components analysis is used to define an “Index of Toughness” for all systems.

Type
Workshop
Information
ASTIN Bulletin: The Journal of the IAA , Volume 24 , Issue 2 , November 1994 , pp. 287 - 309
Copyright
Copyright © International Actuarial Association 1994

References

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