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Designing Optimal Bonus-Malus Systems from Different Types of Claims

Published online by Cambridge University Press:  29 August 2014

Jean Pinquet
Jean Pinquet*
Affiliation:
THEMA, University Paris X, 92001 Nanterre, France
*
Université de Paris X, U.F.R. de Sciences Economiques 200, Avenue de la République 92001 NANTERRE CEDEX, France Phone: 33 1 40 97 47 58; Fax, 33 1 40 97 71 42; E-mail: pinquet@u-paris10.fr
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Abstract

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This paper provides bonus-malus systems which rest on different types of claims. Consistent estimators are given for some moments of the mixing distribution of a multi equation Poisson model with random effects. Bonus-malus coefficients are then obtained with the expected value principle, and from linear credibility predictors. Empirical results are presented for two types of claims, namely claims at fault and not at fault with respect to a third party.

Keywords

Fixed and random effects modelsmixing distributionsexpected value principlelinear credibility predictors
Type
Articles
Information
ASTIN Bulletin: The Journal of the IAA , Volume 28 , Issue 2 , November 1998 , pp. 205 - 220
Copyright
Copyright © International Actuarial Association 1998

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