## Multiplicative insurance tariff calculation

This example demonstrates how HUGIN can be used to calculate the insurance rates.

You can use the model below to calculate car insurance pricing from a multiplicative tariff based on the age of the cardriver, weight of the car, the neighborhood of the driver and the current bonus level fo the driver.

Choose bonus level | |

Age of driver | |

Weight of the car | |

Neighborhood of driver |

The mutiplicative tariff is calculatedl:

The figure below shows the bayesian HUGIN model, which implements the multiplicative tariff.