Research On The Deductible Of Automobile Insurance

Automobile insurance industry has been developing rapidly in China.Deductiblepricing is an area that the insurance market pays a lot attention.Properly deciding on the sizeof deductible can help to achieve a rational spreading of risks between the insurance companyand the insured,thus the insured have a low premium to pay and avoiding unduly highfrequency of payments for small sums of claims,reducing the overall claim costs,andenhancing social well-being to some extent.The insurance classification principle is introduced into the study of deductible in thispaper,because the deductible is related to the size of the claim amount by the insured risk.Thecombination of insurance policy is divided into several group by the risk classificationvariables,the purpose of division is to make sure that every group has the similar risk,then userisk grading model and marginal total parameter estimation method to calculation the value ofrisk in each group.we choose one group as the basic research object,and the distributionfunction of this group is determined.From the view of the insurance company to make thebasic model,the objective function is the profit of the insurance company,the constraintconditions is the insured buy the insurance with deductible.Due to the insure company offertwo insures,one has deductible,the other doesn’t have,the insured can choose one of thetwo.we need to change the constraint conditions according to the condition of the insured,thismodel is adapted to the situation of the insurance market in our country.we have the improvedmodel, and calculate the deductibles.Then solve the model to make the value ofdeductible,and the deductibles of the other groups are determined by the risk of every groupand the standard deductible.The results are applied to the insurance practice,and improved it iscorrectness and rationality.