IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Automobile Insurance Ratemaking In The Presence Of Asymmetric Information

Listed author(s):
  • DIONNE, G.

Automobile insurance is an example of a market where multi-period contracts are observed. This form of contract can be justified by asymmetrical information between the insurer and the insured. Insurers use risk classification together with bonus-malus systems. In this paper the authors show that the actual methodology for the integration of these two approaches can lead to inconsistencies. They develop a statistical model that adequately integrates risk classification and experience rating. For this purpose they present Poisson and negative binomial models with regression component in order to use all available information in the estimation of accident distribution. A bonus-malus system which integrates a priori and a posteriori information on an individual basis is proposed, and insurance premium tables are derived as a function of time, past accidents, and the significant variables in the regression. Statistical results were obtained from a sample of 19,013 drivers. Copyright 1992 by John Wiley & Sons, Ltd.
(This abstract was borrowed from another version of this item.)

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Paper provided by Centre interuniversitaire de recherche en économie quantitative, CIREQ in its series Cahiers de recherche with number 8834.

in new window

Length: 32 pages
Date of creation: 1988
Handle: RePEc:mtl:montec:8834
Contact details of provider: Postal:
C.P. 6128, Succ. centre-ville, Montréal (PQ) H3C 3J7

Phone: (514) 343-6557
Fax: (514) 343-7221
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:mtl:montec:8834. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sharon BREWER)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.