Abstract
The fundamental principle of insurance consists of forming a pool in which the policyholders put their risks. If those risks are not all equal to each other, it is fair to ask each member to pay a premium that is proportional to the risk that he imposes on the pool of risks. When constructing a tariff, it is important to estimate the underlying risk for each insured party so that the cost of claims can be shared fairly. Consequently, the main task of the actuary who sets up a new tariff is to make it as fair as possible by partitioning the policies into homogeneous classes, with all policyholders belonging to the same class paying the same premium.
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© 1985 Springer Science+Business Media New York
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Lemaire, J. (1985). Belgium. In: Automobile Insurance. Huebner International Series on Risk, Insurance and Economic Security, vol 4. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-7708-3_1
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DOI: https://doi.org/10.1007/978-94-015-7708-3_1
Publisher Name: Springer, Dordrecht
Print ISBN: 978-90-481-5814-0
Online ISBN: 978-94-015-7708-3
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