Abstract
When Bayesian models are implemented for a Bonus–Malus System (BMS), a parametric structure, π0 (λ), is normally included in the insurer's portfolio. Following Bayesian sensitivity analysis, it is possible to model the structure function by specifying a class Γ of priors instead of a single prior. This paper examines the ranges of the relativities of the form,
Acknowledgements
Research partially supported by grant from MCyT (Ministerio de Ciencia y Tecnología, Spain, project BEC2001–3774).