BONUS MALUS SYSTEM FOR MOTORIZED VEHICLE INSURANCE USING GEOMETRIC DISTRIBUTIONS AND WEIBULL DISTRIBUTIONS

. The bonus malus system is one of the systems used to determine the premium amount for the next period based on the claim history of the policyholder. If the policyholder has no claims history or did not file a claim in the previous year, then the policyholder will get a bonus or in other words will get a reduction in the premium rate in the following period. Meanwhile, if the policyholder has a history of claims in the previous year, then the policyholder will be subject to a malus or must pay an increase in the premium rate in the following period. The purpose of this study is to calculate motor vehicle insurance premiums using the classic and optimal bonus malus method which takes into account the frequency of claims with a geometric distribution and the size of claims with a Weibull distribution. The results of this study indicate that the optimal bonus malus system is fairer for policyholders who renew their policies because the premium paid by the policyholder depends on the number of claims and the size of the claim, so that each policyholder will pay a different premium according to the number of claims.