Tariff Theory

When an insurance company accepts new insurances or when the premiums of earlier accepted insurances have to be changed on renewal the company has to - search for the factors that influence the premium and - calculate the premium according to the values of these factors. In order to calculate the premiums the company gathers data consisting of factors eventually influencing the amount of claims. On the basis of these data the company calculates the tariff which has to fulfill general principles. Classifications