A GENERALIZATION OF AUTOMOBILE INSURANCE RATING MODELS: THE NEGATIVE BINOMIAL DISTRIBUTION WITH A REGRESSION COMPONENT

The objective of this paper is to provide an extension of well-known models of tarification in automobile insurance. The analysis begins by introducing a regression component in the Poisson Model in order to use all available information in the estimation of the distribution. In a second step, a random variable is introduced in the regression component of the Poisson model and a negative binomial model with a regression component is derived. The authors then present their main contribution by proposing a bonus-malus system which integrates a priori and a posteriori information on an individual basis. They then show how a multivariate net premium tables can be derived from the model. Examples of tables are presented. (A)

  • Corporate Authors:

    CENTRE DE RECHERCHE SUR LES TRANSPORTS. UNIVERSITE DE MONTREAL

    C.P. 6128, SUCCURSALE A
    MONTREAL, QUEBEC  Canada  H3C 3J7
  • Authors:
    • Dionne, G
    • Vanasse, C
  • Publication Date: 1988-12

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00674524
  • Record Type: Publication
  • Source Agency: Transportation Association of Canada (TAC)
  • Files: ITRD
  • Created Date: Mar 8 1995 12:00AM