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Rating the Discount for a Motor Insurance Excess

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  • Taylor, G. C.

Abstract

The problem of rating the discount for an excess is considered under the condition where premium rates for excess-free policies are calculated according to a multiplicative (or equivalently, points rating) model.Section 3 obtains some inequalities on the manner in which the discount should vary over the various risk-classes in the portfolio and compares the results with the current practical situation in Australia.Section 4 derives a formula for rating the discount and gives some reasonable and practical approximations.

Suggested Citation

  • Taylor, G. C., 1979. "Rating the Discount for a Motor Insurance Excess," ASTIN Bulletin, Cambridge University Press, vol. 10(3), pages 295-302, December.
    • Handle: RePEc:cup:astinb:v:10:y:1979:i:03:p:295-302_00
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