Huebner International Series on Risk, Insurance and Economic Security

Bonus-Malus Systems in Automobile Insurance

Authors: Lemaire, Jean

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eBook $189.00
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  • ISBN 978-94-011-0631-3
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Hardcover $239.00
price for USA
  • ISBN 978-0-7923-9545-4
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Softcover $239.00
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  • ISBN 978-94-010-4275-8
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  • Usually dispatched within 3 to 5 business days.
About this book

Most insurers around the world have introduced some form of merit-rating in automobile third party liability insurance. Such systems, penalizing at-fault accidents by premium surcharges and rewarding claim-free years by discounts, are called bonus-malus systems (BMS) in Europe and Asia. With the current deregulation trends that concern most insurance markets around the world, many companies will need to develop their own BMS. The main objective of the book is to provide them models to design BMS that meet their objectives.
Part I of the book contains an overall presentation of the pros and cons of merit-rating, a case study and a review of the different probability distributions that can be used to model the number of claims in an automobile portfolio. In Part II, 30 systems from 22 different countries, are evaluated and ranked according to their `toughness' towards policyholders. Four tools are created to evaluate that toughness and provide a tentative classification of all systems. Then, factor analysis is used to aggregate and summarize the data, and provide a final ranking of all systems. Part III is an up-to-date review of all the probability models that have been proposed for the design of an optimal BMS. The application of these models would enable the reader to devise the system that is ideally suited to the behavior of the policyholders of his own insurance company. Finally, Part IV analyses an alternative to BMS; the introduction of a policy with a deductible.

Table of contents (16 chapters)

  • Introduction — Definition of a Bonus-Malus System

    Lemaire, Jean

    Pages 3-10

  • A Typical Bonus-Malus Evolution: The Belgian Case

    Lemaire, Jean

    Pages 11-19

  • Models for the Claim Number Distribution

    Lemaire, Jean

    Pages 21-42

  • Tool 1: The Relative Stationary Average Level

    Lemaire, Jean

    Pages 59-66

  • Tool 2: The Coefficient of Variation of the Insured’s Premiums

    Lemaire, Jean

    Pages 67-70

Buy this book

eBook $189.00
price for USA (gross)
  • ISBN 978-94-011-0631-3
  • Digitally watermarked, DRM-free
  • Included format: PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $239.00
price for USA
  • ISBN 978-0-7923-9545-4
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
Softcover $239.00
price for USA
  • ISBN 978-94-010-4275-8
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
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Bibliographic Information

Bibliographic Information
Book Title
Bonus-Malus Systems in Automobile Insurance
Authors
Series Title
Huebner International Series on Risk, Insurance and Economic Security
Series Volume
19
Copyright
1995
Publisher
Springer Netherlands
Copyright Holder
Springer Science+Business Media New York
eBook ISBN
978-94-011-0631-3
DOI
10.1007/978-94-011-0631-3
Hardcover ISBN
978-0-7923-9545-4
Softcover ISBN
978-94-010-4275-8
Series ISSN
0924-5014
Edition Number
1
Number of Pages
XXVI, 285
Topics