%0 Journal Article
%T Quest for Optimal Bonus-Malus in Automobile Insurance in Developing Economies: An Actuarial Perspective
%A Ade Ibiwoye
%A I. A. Adeleke
%A S. A. Aduloju
%J International Business Research
%D 2011
%I 
%R 10.5539/ibr.v4n4p74
%X This paper evaluates the bonus-malus system in practice in the Nigerian motor insurance industry. It would appear that the regulation is a bit fluid so that what actually looks like a bonus-malus system is more like a rule of thumb as operators do not honor the industry agreed tariff. This paper constructs an alternative bonus-malus scale that has reasonable penalties and that is yet commercially feasible. The model can easily be replicated for other developing economies.
%U http://www.ccsenet.org/journal/index.php/ibr/article/view/12366