The Pricing Of Employers' Liability Insurance

Insurance has great room for development. With the development of economy and law,a lot of people concern about their own security and safeguarding of the rights.It will provide chances for Liability Insurance.Employers' Liability Insurance being the second largest type of Liability Insurance has a great development, so it is essential that we will reseach the Employers' Liability Insurance.So far,Employers' Liability Insurance just exists in some dangerous industries,in addition,the cover that is very insufficient doesn't meet the need of customers. The fee coming from the developed countries is not fair and reasonable in China,so the Employers' Liability Insurance loses the market share. This article is in the range of this opportunity for employers to carry liability insurance pricing in order to give a more detailed theory.Taking a panoramic view of the full text of this article, it consists of four main parts, which is more well-defined structure.The first chapter and the last chapter is the introduction of employers' liability insurance in theory, the two parts in the middle is a core set of pricing.Firstly, the article introduces the development of our employers' liability insurance. Employers' liability insurance in China develops relatively slowly and is more concentrated in industries such as coal, and other high-risk or foreign-related business, it has not been universal.Then the article introduces the employers' liability insurance's pricing in the developed countries such as Britain, the United States , which could serve as my employers' liability insurance.In this paper, I pay more attention to the employer's liability insurance pricing methods and processes. On the basis of the data which is from British employers liability insurance, I use risk theory and the most intuitive graphical way to determine the trends in the development of the frequency and intensity.Then I use non-life insurance pricing method - pure premium method of calculating premiums.According to the re-classification of their risk, classification rates are calculated. in accordance with different practices of employers,I calculate individual rates.Of course, in order to retain some of the profits of insurance companies and avoid fluctuations in the probability of accidents,the also increases security and additional rate to make rates more fully.The next part points out that the price could be further improved, such as accession to the limit, the deductible try, and the application of reliability theory.Finally.The author makes some suggestions from the government, enterprises, employees,they should work together to promote the development of employers' liability insurance.The article has a choice in its novelty.Because the theoretical studies on the pricing of liability insurance are very few. Most of them are comparison with industrial injury insurance , but for repeated incidents, some enterprises are not guaranteed, the existence of employers' liability insurance is very necessary.With the existence of the reality-based research, this article make the choice becomes unique.In addition, the study of employers' liability insurance in the article is only the areas of the law, as well as the concept,for example, in the employers' liability insurance, employers pay the premiums, and this is obviously different from industrial injury insurance, which is to protect the interests of the employees. Its premiums come from the state, employers, employees tripartite. There are qualitative differences between them. What's more, other articles, involved relatively little technical level, for example, the issue of pricing.In China, more insurance companies have liability insurance products, which are not starting from the actual risk but relatively a simple rate for operating. Some insurance companies are also trying to enter this field, but the result is often lost out.Because employers' liability insurance's claims take longer time,its risk is more difficult to refine, and China is lack of empirical data, there is no effective way to get the appropriate measurement of risk. Increased operating costs allow insurance companies to withdraw from the insurance.Hence the urgent need for our country make us study its pricing system to work out a reasonable and fair rate. The author from the perspective of a more professional look studies employer liability insurance, that is another new place. Experience rate is more or less in line with the rate of risk. And then according to different risks in different sectors, as well as enterprises' positive performance,make the rate closer to the size of the risk. However, the same industry enterprises using a common rate is not quite reasonable,these factor will make risk different, such as geographical location, the management of the effects of different degree on the safety and so on. Insurance companies should depend on the customer's needs and business risk to make an adjustment. A rate in line with the risk characteristics is more competitive.In access to information, our country hasn't complete preservation of data for the employer liability insurance, that is the biggest obstacle of pricing, I can only learn from a group of British employers liability insurance data. This is the biggest shortcoming of the article. The author adopts the general graphical approach to get the intuitive graphic distribution of risk, and then bases on a variety of pricing methods to arrive at a comprehensive and more accurate the results, in addition, the article also draws on statistical methods for the results of their analysis to test the rationality.In the process of discussion, the author mainly uses relatively simple Excel and Eviews software and data on the Statistical Yearbook.I hope that the employers' liability insurance pricing would certainly be of help.