The Risk Analysis And Reinsurance Research Of Motor Vehicle Business

According to the market research, which shows that auto insurance is the most important part of property insurance. 70% revenue in a property insurance company comes from premium of auto insurance. Even more than 80% in some property insurance companies, which main business is auto insurance. But the compensation rate of auto insurance business remains high in past financial years. This is the main reason which cause the auto insurance business stays in a lost position. Therefore, it is significant to analyse risk effectively, and then control these risks within their capabilities through reinsurance.This paper analyses from the perspective of auto insurance risk, using commercial vehicle damage insurance as the research object. By classifing auto insurance effectively, the key cause of the high pay for the range of the car insurance business has been identified. Firstly, the break-even point in auto insurance business was calculated, and then, the ratio when there is no profit will be worked out. Secondly, based on the underwriting and claims data over the years, utilizing analytic hierarchy process and RAC method will be used on the risk analysis of auto insurance business.And then in that high pay business range, through the establishment of optimal reinsurance retention model, which will exceed insurance company control level business effectively reinsurance. Finally, in order to verify practicability and feasibility of the mathematical model, this paper uses examples and verification to verify its feasibility.