Analysis of the Effectiveness of Selected New Types of Bonus-Malus Systems - A Simulation Approach
Analysis of the Effectiveness of Selected New Types of Bonus-Malus Systems - A Simulation Approach

Author(s): Ewa Poprawska
Subject(s): National Economy, Political economy, Methodology and research technology
Published by: Masarykova univerzita nakladatelství
Keywords: bonus-malus systems; motor insurance;
Summary/Abstract: Bonus-malus systems are used for the classification of the insured in different tariff classes based on the individual history of claims. The aim of such systems is to differentiate premiums for clients with high and low claims ratios to limit the phenomenon of the negative selection of customers and to attract low-claims ratio customers. Thus, bonus-malus systems also fulfil a marketing function and are a tool for gaining competitive advantage.

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