Year of Graduation
Statistical Analysis and Bonus-Malus Modelling in the SMTP Insurance
Economics and Statistics
The present report examines car drivers’ behavior for construction of effective premium rates system in Motor Third Party Liability Insurance. The main purpose of the study is to analyse the insurance contracts portfolio to build a distribution model of the number of insured events occurred in one insurance contract and to represent the inefficiency of Russian bonus-malus premium rates system on the basis of benchmarking analysis. To achieve these aims, statistical and actuarial methods of analysis will be applied. Furthermore, linear programming methodology will be used for effective bonus-malus system modeling. The data for the investigation is a portfolio of lossmaking insurance contracts of a big insurance company in Moscow. It is expected that the results of the research will help to point out the inaccuracies of the Russian bonus-malus system and the methods of improvement of its effectiveness.