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Document Details :
Title: Setting a Bonus-Malus Scale in the Presence of Rating Factors
Author(s): TAYLOR, G.
Journal: ASTIN Bulletin
Volume: 27 Issue: 2 Date: November 1997
The operation of a bonus-malus system, superimposed on a premium system involving a number of other rating variables, is considered. To the extent that good risks are rewarded in their base premiums, through the other rating variables, the size of the bonus they require for equity is reduced. This issue is discussed quantitatively, and a numerical example given.