BAYESIAN BONUS-MALUS PREMIUM OF NOVEL ONE PARAMETER MODEL FOR THE SEVERITY COMPONENT CASE

Authors

  • Imene Ouchen Badji Mokhtar-Annaba University Author
  • Mohamed Riad Remita Badji Mokhtar-Annaba University; National School of Artificial Intelligence Author

Keywords:

Bonus-Malus System, Poisson-new XLindley distribution, Inverse-Gamma (2,λ) Lindley distribution, Bayesian premium

Abstract

This study assumes that the frequency of claims follows a Poisson-new XLindley distribution, but the severity of claims follows a new proposed distribution known as the Inverse-Gamma (2, )-Lindley distribution. The premium is computed using the severity of claims in the bonus-malus system. Several examples utilizing an actual dataset for the application of BMS are given.

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Published

2025-04-15

Issue

Vol. 43 No. 4 (2025)

Section

Articles