Bonus-malus systems with different claim types and varying deductibles (Q2360595)
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English | Bonus-malus systems with different claim types and varying deductibles |
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Bonus-malus systems with different claim types and varying deductibles (English)
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4 July 2017
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Consider a bonus-malus system, where not only the number of claims determines the bonus class but also the size of the claim. The number of claims is determined by a mixed Poisson process, where the mixing parameter characterises the customer. Moreover, for bonus classes with a higher premia than the average, a deductible depending on the size of the claim is applied and the premium is reduced accordingly. It is investigated whether `fair' deductibles exist. The theory is illustrated by some examples. It seems a little bit strange to have a claim size dependent bonus-malus system but iid claims. Thus the work should be generalised to customers with non-equal claim size distributions.
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bonus-malus system
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claim type
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varying deductible
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indifference principle
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allocation principle
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Markov chain
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stationary distribution
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