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1 results

  • Premium Rating by Geographic Area Using Spatial Models

  • M. Boskov, R. J. Verrall
  • Journal:
    ASTIN Bulletin: The Journal of the IAA / Volume 24 / Issue 1 / May 1994
    Published online by Cambridge University Press:
    29 August 2014, pp. 131-143
    Print publication:
    May 1994
    • Article
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  • This paper gives a method for premium rating by postcode area. The method is based on spatial models in a Bayesian framework and uses the Gibbs sampler for estimation. A summary of the theory of Bayesian spatial methods is given and the data which was analysed by Taylor (1989) is reanalysed. An indication is given of the wide range of models within this class which would be suitable for insurance data. The aim of the paper is to introduce the models and to show how they can be utilised in an insurance setting.