Defect Analysis And Empirical Research On Bonus-Malus System Of Motor Vehicles

BMS (Bonus-Malus System) means the vehicle if in a year without any payment, the annual renewal will enjoy no claim to reduce the insurance premium discount, it is a system of the general auto-insurance.Since the reform and opening up, especially after China’s entry into WTO, the development momentum of China’s automobile industry growing, automobile consumption has become a hot topic of household consumption at present. Motor vehicle insurance and thus more attention, especially according to the recently issued the "Sino-US joint on strengthening the economic relationship between China and America show", China has decided to open a foreign insurance company insurance to pay strong, last position cross-strong insurance as a local insurance industry also began to open to the foreign insurance company, this is not only means opening a line, also means that the previous domestic insurance companies can bundle cross-strong insurance and other types of vehicles competitive advantage has disappeared, which increases in domestic automobile insurance industry competition difficulty. Because in the future automobile market, is not simply a seller’s market, it also faces the comparison and selection of different consumer groups, if you cannot adapt to the market of the insurance companies will be eliminated by the market. In the whole automobile insurance competition, the pricing of insurance products is seen as a key factor in the competition of the whole motor vehicle insurance, it is not only related to the interests of the insured and the insurance company, and the future fate. Premium set includes two aspects, one is to determine the basic and premium; one is the annual renewal premium adjustment, on the one hand, is mainly decided by the rewards and punishment system. Abroad, for the study of motor vehicle insurance products pricing is long-standing, in which Jean Lemaire for the development of the system play a decisive role, in China, research on this system Meng Henan and Professor Yuan Wei also has a leading. There are many factors determine the insurance premium rate of motor vehicle insurance companies, such as motor vehicle drivers driving experience, the age of the vehicle, motor vehicle use properties of these a priori information, test information that also includes owners claim number record. The above information will affect the insurance companies rate.BMS according to the level of risk insurance is different for different rates, it is for the development of different risk insured at different rates, maintenance of motor vehicle insurance markets are fair, to prevent moral hazard and reduce the small claims, insurance company to control spending has played a very important role.