CLASSICAL AND OPTIMAL BONUS MALUS SYSTEM IN CALCULATION OF PURE PREMIUM IN VEHICLE INSURANCE WITH BAYESIAN APPROACH

• Main Author: YULIAWAN (NIM: 20816010), RAMA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30191
• Institution: Institut Teknologi Bandung

The bonus malus system determines the premium based on the claims history of each policyholder. Bonus is described as premium decreasing for the next period given to policyholder who didn't file the claims in the previous period. In the other hand, malus is increasing premium given to policyholder who files the claims. This paper discuss about classical and optmal bonus malus system in vehicle insurance. Classical bonus malus system considers premium base on the claims frequency, but optimal bonus malus system considers premium base on frequency and severity claims as well. <br /> <br /> Bayesian approach is applied in premium calculation by describing exspectation value base on historical data. In this case, Bayesian approach explores the parameters of loss through historical data and actuary opinion. This Thesis use a numerical simaulation data. Poisson, eksponential, and inverse gamma distribution are some distribution which is used in that simulation. The distribution and its parameters are asumed as actuary opinion <br /> <br /> The product obtained in this thesis are classical and optimal bonus malus tables. The classical bonus malus table is presented in percentage form and applies comprehensively because it is not influenced by claim severity. The optimal bonus malus table is presented in nominal of rupiah. In the optimal bonus malus system, bonus malus table is conditionally on the aggregate size of the claim severity produced by policyholder. <br />