Detailed Information on Publication Record

KAFKOVÁ, Silvie. Efficiency of bonus-malus system. In Ing. Miroslav Čulík, Ph.D. ŘÍZENÍ A MODELOVÁNÍ FINANČNÍCH RIZIK. Ostrava, Czech Republic: VŠB-Technická univerzita Ostrava, Ekonomická fakulta, katedra financí, 2014, p. 323-328. ISBN 978-80-248-3631-7.

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Basic information
Original name	Efficiency of bonus-malus system
Authors	KAFKOVÁ, Silvie (203 Czech Republic, guarantor, belonging to the institution).
Edition	Ostrava, Czech Republic, ŘÍZENÍ A MODELOVÁNÍ FINANČNÍCH RIZIK, p. 323-328, 6 pp. 2014.
Publisher	VŠB-Technická univerzita Ostrava, Ekonomická fakulta, katedra financí

Other information
Original language	English
Type of outcome	Proceedings paper
Field of Study	10103 Statistics and probability
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/00216224:14560/14:00077216
Organization unit	Faculty of Economics and Administration
ISBN	978-80-248-3631-7
UT WoS	000350605800039
Keywords in English	Bonus-malus system; Markov chain; relative premium; Loimaranta efficiency
Tags	International impact, Reviewed
Changed by	Changed by: Mgr. Silvie Zlatošová, Ph.D., učo 175424. Changed: 2/4/2015 11:55.

Abstract
This paper deals with bonus-malus (BM) system in vehicle insurance. This system penalizes drivers responsible for accidents and rewards the drivers for claim-free years. First the long term behaviour of BM system is studied. Then the relative Bayesian premium associated with each level of BM system is suggested for insurance portfolio. For this purposes, minimization of quadratic loss function and Bayesian approach are used. The calculated relative premium is compared to the relative premium from Czech Insurance Company. Finally, the efficiency of bonus-malus system is evaluated by Loimaranta efficiency.

Abstract

This paper deals with bonus-malus (BM) system in vehicle insurance. This system penalizes drivers responsible for accidents and rewards the drivers for claim-free years. First the long term behaviour of BM system is studied. Then the relative Bayesian premium associated with each level of BM system is suggested for insurance portfolio. For this purposes, minimization of quadratic loss function and Bayesian approach are used. The calculated relative premium is compared to the relative premium from Czech Insurance Company. Finally, the efficiency of bonus-malus system is evaluated by Loimaranta efficiency.