Statistical Analysis and Bonus-Malus System Modeling in CNC Insurance

<p style="text-align: justify;">This paper presents information about the state of the automobile insurance market in Russia. The study analyzes the portfolio of one auto insurance company in CNC (Comprehensive and Collision) insurance. On the basis of the empirical data was modeled theoretical claim distribution.</p><p style="text-align: justify;">There is a set of parameters and criteria affecting the value of non-compulsory auto insurance. One of the important components of the investigation is bonus-malus system. It is one of the parameters that determines the cost of auto insurance policy in Russia. At the moment bonus-malus system is gaining popularity in our country, therefore it needs constant adjustment. Insurance companies need accurate calculations of these indicators because they [indicators] affect their position on the market. The problem arises in connection with the development of BMS in our country. There is no precise and clear system in the non-compulsory insurance.</p><p style="text-align: justify;">To achieve these goals, statistical and actuarial methods of analysis were applied and also estimation and construction of optimal bonus-malus system was examined.</p>