Graphic and Numerical Evolution of a Bonus-Malus System via Markov Chain Models

Abstract

This paper describes an online solution for visualizing the simulation of a discrete time Markov chain using an animated graph. Based on the D3.js library, the development of this solution offers the user the choice between a presentation based on the concept of a probabilistic graph oriented and a presentation of the transitions in a matrix framework. As an application the solution helps to describe the dynamics of individual policyholders in a Bonus-Malus system of automobile insurance.