The International Comparative Study On The Bonus-Malus System Of Automobile Insurance

The bonus-malus system(BMS) is a way to differ from policyholders of differentrisk level, the policyholders who have claim records will be punished by the BMS ofinsurance company in the next year, while those who have no claim will get a reward.Most insurance companies all over the world have their bonus-malus system, so it hasgood significance on the development of a country’s automobile insurance industry.Firstly, starting from the results of the research of foreign scholars and experts,we reviewed the research of BMS and have a brief comments. Then put forward thebasic principle of BMS,to prepare for the later study we point out the several aspectsof the BMS. We research in the BMS of European Union, America, Korea and HongKong, compare with the BMS of China, we point out the advantages anddisadvantages of each system. We give some policy suggestions on how to improvethe BMS in China and put forward a new model, which has great theoretical andrealistic significance.