Car Insurance Incentive System And Its Application In China,

Automobile insurance has always been the biggest property insurance in china as well asother countries. After China's entry into WTO, many foreign insurance companies have enteredinto China's insurance market. So the market becomes more competitive. How to adapt to thenew competition is the main problem all the insurance companies are concerning about. Since theNew Year's Day of 2003, the property insurance companies that run automobile insurance beganto use a new insurance policy. Being one of the important competitive methods, bonus-malussystem (or no claim discount system) has been used widely in automobile insurance industries. This paper includes three parts as follows. In Chapter one, we give the basis knowledge of automobile insurance andpricing. We show the characters of automobile insurance, its types and the factors that taken intopricing. In Chapter two, we introduce all kinds of optimal bonus-malus systems that weredeveloped newly in the actuarial literatures. And we analyze the process of itsdevelopment. In Chapter three,we first trace the way of bonus-malus system of china, findingits defects and providing improving suggestions. Then using the data that weresupplied by an insurance company in China, we develop an optimal BMS. Thenchoosing five typical BMS of China,we compare their index of penalization. And wefind the BMSs in China are temperate.