Template-type: ReDIF-Paper 1.0
Author-Name: Antonio José Heras Martínez
Author-Workplace-Name: Departamento de Economía Financiera y Contabilidad I (Economía Financiera y Actuarial). Universidad 
	Complutense de Madrid.
Author-Workplace-Homepage:
 https://www.ucm.es/economia-financiera-y-actuarial
Author-Name: José Luis Vilar Zanón
Author-Workplace-Name: Departamento de Economía Financiera y Contabilidad I (Economía Financiera y Actuarial). Universidad 
	Complutense de Madrid.
Author-Workplace-Homepage:
 https://www.ucm.es/economia-financiera-y-actuarial
Author-Name: José Antonio Gil Fana
Author-Workplace-Name: Departamento de Economía Financiera y Contabilidad I (Economía Financiera y Actuarial). Universidad 
	Complutense de Madrid.
Author-Workplace-Homepage:
 https://www.ucm.es/economia-financiera-y-actuarial
Title: On the Evaluation of the Asymptotic Fairness of Bonus-Malus Systems  
Abstract: In this paper we try to evaluate the asymptotic fairness of bonus-malus systems, assuming the simplest case when there is 
	no hunger for bonus.The asymptotic fairness has to be understood as the bonus-malus systemability in assessing the 
	individual risks in the long run (see Lemaire[1995] p.xvi). Firstly we de…ne the asymptotic fairness of a bonus-malussystem 
	following an expression that can be found in Lemaire [1985] p.168. Secondly, we de…ne a measure of the global asymptotic
	fairness considering the structure function of the risk group. Finally we try to calculate, for each set of transition rules 
	and a given structure function,the scale of premiums that brings the global asymptotic fairness closest to the ideal 
	situation where each insured pays in the long run a premium corresponding to its own claim frequency.This is possible thanks 
	to the application of a multiobjective optimization technique named Goal Programing. We give an example illustrating the 
	fact that the ideal case could be fairly well approached.
Keywords:
 Bonus-malus system; Asymptotic fairness; Goal Programming; Simplex method.
Length: 38 pages
Creation-Date: 2001
Number: 01-32 
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doctra01-32.txt
File-URL: https://eprints.ucm.es/id/eprint/6754/1/0132.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doctra:01-32