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Weekly dynamic motor insurance ratemaking with a telematics signals bonus-malus score

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We present a dynamic pay-how-you-drive pricing scheme for motor insurance using telematics signals. More specifically, our approach allows the insurer to apply penalties to a baseline premium on the occurrence of events such as hard acceleration or braking. In addition, we incorporate a bonus-malus system (BMS) adapted for telematics data, providing a credibility component based on past telematics signals to the claim frequency predictions. We purposefully consider a weekly setting for our ratemaking approach to benefit from the signal’s high-frequency rate and to encourage safe driving via dynamic premium corrections. Moreover, we provide a detailed structure that allows our model to benefit from historical records and detailed telematics data collected weekly through an onboard device. We showcase our results numerically in a case study using data from an insurance company.

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YANEZ, Juan sebastian, GUILLÉN, Montserrat, NIELSEN, Jens perch. Weekly dynamic motor insurance ratemaking with a telematics signals bonus-malus score. _ASTIN Bulletin_. 2025. Vol. 55, núm. 1, pàgs. 1-28. [consulta: 20 de gener de 2026]. ISSN: 0515-0361. [Disponible a: https://hdl.handle.net/2445/219058]

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