Actuarial Modelling of Claim Counts

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. Offers the first self-contained, practical approach to a priori and a posteriori ratemaking in motor insurance. Discusses the issues of claim frequency and claim severity. Presents recent developments in actuarial science and exploits the generalized linear model and generalized linear mixed model to achieve risk classification. Presents credibility mechanisms as refinements of commercial Bonus-Malus scales. Provides practical applications with real data sets processed with SAS statistical software, widely used in the insurance industry. Features a supporting website containing solutions to the numerous exercises, and further examples and tasks. Examines multi-events systems. Examines combinations of deductibles and Bonus-Malus systems.