Abstract
If you introduce a franchise or raise its amount, the number of claims will decrease. One reason why you will operate a franchise in car damage insurance is to avoid the troublesome and expensive handling of the large number of very small claims. Therefore, the management could use a mathematical model describing the number of claims as related to the size of the franchise. By varying this figure one may find the franchise that provides for the optimal business conditions.
Volume
6:3
Page
191-194
Year
1972
Categories
Actuarial Applications and Methodologies
Ratemaking
Classification Plans
Financial and Statistical Methods
Loss Distributions
Frequency
Business Areas
Automobile
Publications
ASTIN Bulletin
