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The comparison includes the demonstration of the Hong Kong auto insurance market and the simulation of a bonus-malus system allowing for claim amounts. The organization of this paper is as follows. Section 2 introduces a simple method, namely, the Optimal Linear estimator, which can be used to compute the relativity premium in a steady state bonus-malus system.
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Bonus-malus payments are in addition to the normal cost of call center services. Insurance. In insurance, a bonus-malus system (BMS) is a system that adjusts the premium paid by a customer according to their individual claim history.
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