Research Of Application In China Of Bomus-Malus System In Automobile Insurance

The BMS(Bonus-Malus System)is namely prize and punishment system, in our automobile insurance it is called to be no-claim bonus system. It is like this a kind of widely adopted system in the automobile insurance: in the next insurance year, the policyholders who have some claim records will be punished by the premium from the insurance company, while those who have no claim record will be rewarded. The insurance practice has proved that, in the automobile insurance, the BMS is very necessary, and the meaning is important.Chapter 1 introduces the significance of this paper topic, research state and the main content.Chapter 2 of this paper introduces pricing factor and risk classification variable of automobile insurance.Chapter 3 introduces BMS, optimal BMS and its improvement process. The BMS which only consider the claim times developed to the one which take both claim times and distributing of claim amount into account, at last, it develop to the BMS which consider the available information, claim times and claim amount.Chapter 4 is seeing the problems in China's BMS from foreign BMS.Chapter 5 will make empirical research on China's automobile insurance. First this chapter introduces the improvement of China's BMS. There will be two parts. First part is about empirical research. The second part will offer some suggestion for BMS of China's automobile insurance which is base on the result of the paper.