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Journal of Actuarial Practice (1993–2006)

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Date of this Version

2001

Document Type

Article

Citation

Journal of Actuarial Practice 9 (2001), pp. 67-96

Comments

Copyright 2001 Absalom Press

Abstract

This paper examines an integrated ratemaking scheme including a priori risk classification and a posteriori experience rating. In order to avoid the high penalties implied by the quadratic loss function, the symmetry between the overcharges and the undercharges is broken by introducing parametric loss functions of exponential type.

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