Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10523920 | Operations Research Letters | 2014 | 5 Pages |
Abstract
A bonus-malus system calculates the premiums for car insurance based on the previous claim experience (class). In this paper, we propose a model that allows dependence between the claim frequency and the class occupied by the insured using a copula function. It also takes into account zero-excess phenomenon. The maximum likelihood method is employed to estimate the model parameters. A small simulation is performed to illustrate the proposed model and method.
Related Topics
Physical Sciences and Engineering
Mathematics
Discrete Mathematics and Combinatorics
Authors
Xiaobing Zhao, Xian Zhou,