Professor Dr Noriszura Ismail
Department of Mathematical Sciences
Universiti Kebangsaan Malaysia
Malaysia

 

Dr Noriszura binti Ismail is a Professor in Actuarial Science Program, Department of Mathematical Sciences, Faculty of Science & Technology, Universiti Kebangsaan Malaysia since Aug 2016. She previously was an Associate Professor (2008-2016), a Senior Lecturer (2007-2008) and a Lecturer (1993-2007). She specialises in Risk Modelling & Applied Statistics. Her current research interests are non-life insurance, GLM, zero-inflation, pension, social security, and copula. She received her B.Sc. (Actuarial Science, 1991) and M.Sc. (Actuarial Science, 1993) from University of Iowa, USA and later, Ph.D. (Statistics, 2007) from Universiti Kebangsaan Malaysia. She has also passed five professional papers from the Society of Actuaries USA in 1994 (SOA100, SOA110, SOA120, SOA140 & SOA165). 

 

Experience Rating Using Bonus-Malus, With Applications in R

Bonus-malus system, which is used interchangeably as “no-fault discount”, “merit rating”, “experience rating” or “no-claim discount” in different countries, is based on penalizing insureds who are responsible for one or more claims by a premium surcharge, and awarding insureds with a premium discount if they do not have any claims. Insurers use bonus-malus systems for two main purposes; to encourage drivers to drive more carefully in a year without any claims, and to ensure insureds to pay premiums proportional to their risks based on claims experience. In this presentation, we relate the NCD system with a discrete time parameter Markov Chain, and show some applications of the Markov Chain model on the NCD system such as stationary distribution, convergence rate, premium evolution, and premium rating. We also show briefly the application of R on several insurance data.