Ratemaking by geographical area in the Boskov and Verrall model: a case study using Belgian car insurance data

Brouhns, Natacha;Denuit, Michel;Masuy, Bernard;Verrall, Richard
(2002)

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Authors
  • Brouhns, NatachaUCLouvain
    Author
  • Denuit, MichelUCLouvain
    Author
  • Masuy, BernardUCLouvain
    Author
  • Verrall, Richard
    Author
Abstract
This paper uses a method proposed by Boskov & Verrall (1994) for premium rating by postcode area. The aim is to analyze geographical variation in claim frequencies in order to estimate the local risk in each geographical area and to build homogeneous rating regions. The method accounts for spatial correlation in an hierarchical Bayesian framework and uses computer-intensive MCMC methods for statistical inference.
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Brouhns, N., Denuit, M., Masuy, B., & Verrall, R. (2002). Ratemaking by geographical area in the Boskov and Verrall model: a case study using Belgian car insurance data (STAT Discussion Paper 0202). https://hdl.handle.net/2078.5/34329