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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. |