Our research

Our academic staff are at the forefront of global thinking on issues relating to wealth and wellbeing, strong organisations, transformative innovation, and the

Student resources

Whether you're a new or continuing student, you can find everything you need here about managing your program and the opportunities available to you.


Our alumni may be found in the world’s leading companies, policy agencies and universities.

Contact us

Find contact details for any general enquiries.

Optimal design of a bonus-malus system: linear relativities revisited

Optimal design of a bonus-malus system: linear relativities revisited

Chong It Tan

In this paper, we revisit the determination of optimal relativities under the linear form of relativities that is more viable in designing a commercial bonus-malus system. We derive the analytical formulae for the optimal linear relativities subject to a financial balanced inequality constraint. We also numerically investigate the impact of different a priori risk classification towards the effectiveness of transition rules. Our results show that the a priori risk segmentation is not a sensitive factor for the effectiveness of transition rules. Furthermore, relative to the general relativities, we find that the restriction of linear relativities only produces a small amount of deterioration towards the numerical value of the optimised objective function.

Partnership opportunities available

Our College is actively engaged in partnering with industry for the co-creation of value in areas congruent with our research agenda

Find out more >>

Other research you might be interested in


Updated:   18 February 2017 / Responsible Officer:  CBE Communications and Outreach / Page Contact:  College Web Team