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Document Details :

Title: On the Convergence State of Bonus-Malus Systems
Author(s): BONSDORFF, Heikki
Journal: ASTIN Bulletin
Volume: 22    Issue: 2   Date: November 1992   
Pages: 217-223
DOI: 10.2143/AST.22.2.2005116

Abstract :
Under certain conditions, a Bonus-Malus system can be interpreted as a Markov chain whose n-step transition probabilities converge to a limit probability distribution. In this paper, the rate of the convergence is studied by means of the eigenvalues of the transition probability matrix of the Markov chain.