In:
Operations Research, Institute for Operations Research and the Management Sciences (INFORMS), Vol. 22, No. 5 ( 1974-10), p. 954-978
Abstract:
This paper examines the effects over an individual's driving lifetime of being charged annual premiums for automobile bodily-injury insurance in accordance with particular merit rating plans. Individual accident involvement is modeled as a compound Poisson process and the annual premium amounts as a Markov process. For each plan, the model examines (1) how well an individual's lifetime premium payments reflect his accident likelihood, (2) the discount that is provided for accident-free drivers, (3) the probability that a driver pays a very high annual premium, and (4) the number of years that lapse before a previous accident no longer affects a driver's premium.
Type of Medium:
Online Resource
ISSN:
0030-364X
,
1526-5463
DOI:
10.1287/opre.22.5.954
Language:
English
Publisher:
Institute for Operations Research and the Management Sciences (INFORMS)
Publication Date:
1974
detail.hit.zdb_id:
2019440-7
detail.hit.zdb_id:
123389-0
SSG:
3,2
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