KAFKOVÁ, Silvie. Relative premium in vehicle insurance. In Oleg Deev, Veronika Kajurová, Jan Krajíček. European financial systems 2014. Proceedings of the 11th international scientific conference. Brno: Masarykova univerzita, 2014. p. 295-299, 5 pp. ISBN 978-80-210-7153-7.
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Basic information
Original name Relative premium in vehicle insurance
Authors KAFKOVÁ, Silvie (203 Czech Republic, guarantor, belonging to the institution).
Edition Brno, European financial systems 2014. Proceedings of the 11th international scientific conference, p. 295-299, 5 pp. 2014.
Publisher Masarykova univerzita
Other information
Original language English
Type of outcome Proceedings paper
Field of Study 50600 5.6 Political science
Country of publisher Czech Republic
Confidentiality degree is not subject to a state or trade secret
Publication form printed version "print"
RIV identification code RIV/00216224:14560/14:00077209
Organization unit Faculty of Economics and Administration
ISBN 978-80-210-7153-7
UT WoS 000350701500039
Keywords in English Markov chain; premium; bonus-malus system
Tags Reviewed
Changed by Changed by: Mgr. Silvie Zlatošová, Ph.D., učo 175424. Changed: 2/4/2015 11:57.
Abstract
Very important task of the actuary is to create a fair tariff structure. This structure has to fairly divide the burden of claims among policyholders. The subject of this paper is bonus-malus system in vehicle insurance. This system penalizes drivers responsible for accidents and rewards the drivers for claim-free years. First the long term behavior of BM system is examined. A stationary distribution of the drivers is calculated based on Markov chains. Then the relative premium associated with each level of BM system is calculated. For this purposes, quadratic loss function and Bayesian approach are used. Finally, we compare the calculated relative premium to the relative premium from Czech Insurance Company.
PrintDisplayed: 31/10/2020 15:02