Centro de Documentación de Fundación MAPFRE - An average model approach to experience based premium rates discounts : an application to Spanish agricultural insurance

Notes: Sumario: We address some issues in agricultural insurance, describing drawbacks of the bonus-malus system (BMS) methodology used in Spain and many other EU countries. We develop an alternative experience based premium rate discount system taking into account the adverse years when high losses caused by extreme weather events happen. Our contribution consists of a two-step methodology. Firstly, we use tobit or Tweedie regressions to calculate yearly correction rates. Secondly, we calculate the mean of the correction rates. This average model acts as a buffer against adverse year losses. We compare three alternatives: our two resulting average models and the BMS operating in the Spanish line of business exemplifiedtable grapes.

Related records: En: European Actuarial Journal. - Cham, Switzerland : Springer Nature Switzerland AG, 2021-2022. - 07/12/2020 Número 2 - diciembre 2020 , p. 361-375Materia / lugar / evento: Seguros agrarios Cálculo actuarial España Otros autores: Heras, Antonio
Frutos, Estela de
Other categories: 329

Rights: In Copyright (InC)

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