Abstract
The estimation of risk premium for individual car models is discussed. Cluster analysis is used to identify groups of car models with similar technical attributes. Credibility theory is used to combine estimates of risk premium from individual car model claim statistics, group claim statistics, and a technical assessment carried out by car experts. The procedure is applied to a small set of car models.
KEYWORDS credibility, motor insurance, cluster analysis, risk premium.
Volume
16:2
Page
165-183
Year
1986
Categories
Actuarial Applications and Methodologies
Ratemaking
Classification Plans
Business Areas
Automobile
Personal
Financial and Statistical Methods
Credibility
Publications
ASTIN Bulletin
