An Empirical Study Of The Bonus-Malus Systems Of China's Vehicles Insurances

There are 6 chapters int this article. In the first chapter, we study the historical background and significance of BMS as well as the work we will do in this article in details. Chapter II details the classification of the risk of information of vehicle insurance and its characteristics. In chapter III, we focus on two basic tools (claim frequency and claim size data fitting), introduce insurance of motor vehicles used in the distribution of various types of claims in detail. In chapter IV, basing on the vehicles insurance terms and charter for rates used in 12 major Chinese property insurers in 2003, we get their own transfer matrix. Applying of actuarial theory and methods, we achieve stability under steady-state probability distribution and the average premium level. In chapter V we do comprehensive analysis and evaluation mainly through the evaluation indicators By using of MATLAB and SAS software, and two ways we classify the BMS. In the end, based on the method of correspondence analysis we select variables above mentioned indicators. For the multidimensional data structure, by using correspondence analysis and hierarchical clustering method, we get cluster-analysis figure, and analyzing its rationality. The results showed that both the comprehensive evaluation of the results were consistent. This indicates the characters of China's incentive system. We also compare and evaluate BMS of each insurance corporation. In chapter VI, we give some proposal on the weak point of BMS and the future study of BMS.