Hierarchical random‐effects model for the insurance pricing of vehicles belonging to a fleet
用于车队车辆保险定价的分层随机效应模型
Summary We propose a count‐data model with hierarchical random effects for the posterior insurance ratemaking of vehicles belonging to a fleet, by allowing random effects for the fleet, the vehicles, and time. We derive a simple closed‐form ratemaking formula based on a hierarchical random‐effects specification. We estimate the corresponding econometric model and compute insurance premiums according to the past experience of both the vehicle and the fleet. Our model can be…