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The Efficiency of a Bonus-Malus System

Published online by Cambridge University Press:  29 August 2014

Nelson De Pril
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Abstract

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The concept efficiency of a bonus-mains system was defined, apparently in a totally different way, consecutively by Loimaranta (1972) and Lemaire (1975, 1976). In this paper we start with a more general model that leads us to a definition of efficiency that contains both earlier ones as special cases. Further we introduce the definition of efficiency over a finite planning horizon and consider the efficiency not only for a single risk but also for the entire risk group. As a consequence of our approach we can also generalize the concepts excess premium and central value as they were introduced by Loimaranta.

Type
Research Article
Information
ASTIN Bulletin: The Journal of the IAA , Volume 10 , Issue 1 , May 1978 , pp. 59 - 72
Copyright
Copyright © International Actuarial Association 1978

References

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