THE EFFICIENCY OF BONUS-MALUS SYSTEM IN SEVERAL EUROPE COUNTRIES

• Main Author: Rantini, Dwi
• Format: Final Project
• Language: Indonesia
• Subjects: Matematika
• Online Access: https://digilib.itb.ac.id/gdl/view/34012
• Institution: Institut Teknologi Bandung

Bonus-malus system is used in insurance sector. Bonus-malus system is a system when claims is not submitted will get bonus and if it is submitted will get punishment (malus). This research used bonus-malus system which applied in several Europe countries. Those are Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, Switzerland, and United Kingdom. Population analysis was performed before comparing the efficiency of bonus-malus system in each country. Cluster analysis method is used to select countries which has similarity. Degree of efficiency will be counted for each bonus-malus system of selected Europe countries. Premium classes analysis of bonus-malus system toward claims frequency is used to get efficiency degree of each country. Bonus-malus system viewed as Markov chain. It will be determined transition matrix, stationer distribution and stationer premium. The efficiency of bonus-malus system in each Europe country will be obtained by the analysis and calculation.