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This book offers a comprehensive treatment of the various experience rating systems applicable to automobile insurance and their relationships with risk classification. It also summarizes the most recent developments in the field, presenting ratemaking systems, whilst taking into account exogenous information. The book includes numerous illustrations using advanced statistical software to allow for a deep understanding of the concepts. It also offers all the actuarial techniques to design bonus-malus mechanisms. This is an extremely timely addition to the literature, as European directives recently introduced complete rating freedom, allowing companies to set up their own rates, select their own classification variables and design their own BMS. The book will prove a valuable supplement to Actuarial courses and professional insurance bodies.
Primary Students in actuarial programs around the world, supplementing Lemaires classic text (see Competition) with more practical and modern techniques. The many examples and empirical illustrations also make it eligible for a support for courses on non-life ratemaking. Professional bodies in the insurance business are likely to adopt it as it concentrates on central issues. Professionals involved in the insurance industry, for example, applied mathematicians, quantitative economists, financial engineers and statisticians. Secondary Academics, researchers and PhD students.
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