Evaluating Transition Rules for Enhancing Fairness in Bonus–Malus Systems: An Application to the Saudi Arabian Auto Insurance Market

Evaluating Transition Rules for Enhancing Fairness in Bonus–Malus Systems: An Application to the Saudi Arabian Auto Insurance Market

A Bonus–Malus System (BMS) is a ratemaking mechanism used in insurance to adjust premiums based on a policyholder’s claim history, with the goal of segmenting risk profiles more accurately. A BMS typically comprises three key components: the number of BMS levels, the transition rules dictating the m...

Full description

Saved in:
Bibliographic Details
Main Authors: Asrar Alyafie, Corina Constantinescu, Jorge Yslas
Format: Article
Language:English
Published: MDPI AG 2025-01-01
Series:Risks
Subjects:
Bonus–Malus system
optimal relativities
transition rules
random effects
Online Access:https://www.mdpi.com/2227-9091/13/1/18
Tags: Add Tag
No Tags, Be the first to tag this record!

Internet

https://www.mdpi.com/2227-9091/13/1/18

Similar Items