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A Note on Bonus Scales

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Author Info
João Manuel Andrade e Silva
Maria de Lourdes Centeno

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Abstract

We revisit the optimal bonus scales introduced by Norberg (Norberg, R., 1976, "Scandinavian Actuarial Journal" (2): 92-107), Borgan, Hoem, and Norberg (Borgan, O., J. Hoem, and R. Norberg, 1981, "Scandinavian Actuarial Journal" (2): 165-178), and Gilde and Sundt (Gilde, V., and B. Sundt, 1989, "Scandinavian Actuarial Journal" (1): 13-22) and underline some potential problems of the linear scales. As a possible solution we propose the use of geometric scales. Copyright The Journal of Risk and Insurance.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1539-6975.2005.00140.x
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Article provided by The American Risk and Insurance Association in its journal The Journal of Risk and Insurance.

Volume (Year): 72 (2005)
Issue (Month): 4 ()
Pages: 601-607
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Handle: RePEc:bla:jrinsu:v:72:y:2005:i:4:p:601-607

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