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, 6 pp. 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.
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