In multi-period insurance contract, the premiums that the insured must pay increase whenever he files a claim. Hence in this case the buyer of insurance faces a problem which does not exist in one period contracts. Namely: he must decide for which damages he should file a claim and for which he...

In automobile insurance the premium rate which the insured must pay increases whenever he files a claim. Here we present the optimal claims strategy of the insured. It is shown that the insured will file a claim only if the damage exceeds some critical value which depends on his premium rate and...