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Bonus-Malus Systems with Varying Deductibles
[chapter]
Actuarial Modelling of Claim Counts
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. KEY WORDS Bonus-Malus system, differentiated bonus scale deductibles, Markov chains
doi:10.1002/9780470517420.ch7
fatcat:q35zjavi2zbrbdhi7rotnkpxci