Bonusmalusordning

Bonusmalusordning is an insurance pricing system used in several countries to adjust premiums based on a policyholder’s claims history. A bonus represents a discount for claim-free periods, while a malus represents a surcharge following claims. The system is most common in motor vehicle liability insurance but can also apply to other lines of business.

How it works: The premium at renewal is adjusted according to the previous period’s claims record. If no claims were made, the policyholder can receive a larger discount. If there were one or more claims, the premium may rise due to a malus, either as a fixed surcharge or as a reduced discount. The size of the bonus or malus can depend on factors such as fault and the severity of the claim. Some small or specific types of claims may not affect the bonus, depending on the terms of the policy.

Scope and regulation: The exact scales, caps, and reset rules differ by country and insurer. Some markets set maximum levels for bonus and malus and define how long a bonus lasts. In some jurisdictions, rules or supervisory guidelines regulate how claims are counted and how long a malus can influence pricing.

Impact and considerations: The system aims to reward safe driving and more accurately allocate risk. It can create price volatility for individual policyholders and may interact with deductibles and other discounts. Consumers should review policy terms to understand how renewals might change their premium and under what circumstances a claim affects the bonusmalus.