DETERMINATION OF RELATIVE PREMIUM IN A BONUS-MALUS SYSTEM UNDER ORDER CONDITION Page No: 3307-3311

Maryam Teimourian, Amir Payandeh Najafabadi and Mohammad Vahidi-Asl

Keywords: Bonus-Malus system, constrained parameter space, relative premium, bayesian estimation, gibbs sampling.

Abstract: The problem of the determination of the relative premiums of a L level Bonus-Malus system while the risk parameters in the system satisfy ?1 < ?2 < ... < ?L is considered in this paper. In this paper used an MCMC Bayasian approach to estimating such constrained relative parameters. Also, several applications where estimation of such constrained relative parameters are needed have been given for some Bonus-Malus systems.



[View Complete Article]