The Empirical Research Of Influence Factor Of Underwriting About Multi-Corporation’s Insurance

It is revealed that multi-corporations make a lot of contributions in the development of economic globalization which leads to significant progresses of risk management through practicing. As an effective way to manage growing risks in modern enterprises, insurances play a more and more important role while enlarges the international insurance market which involves China as well. There is no doubt it is crucial for China to grasp the chance to participate in the international insurance market in cooperation with foreign insurance companies which teaches us how to handle business in markets that we are unfamiliar with as well as gain both experiences and profits.First, the comparison of the multi-national companies and the domestic companies that both are insured indicates that there exist lots of distinctive differences on the aspects of the manner of covering and risk-management respectively. So the domestic companies are likely to take flexible ways to decide whether to accept insurance or not according to the actual situations mainly including the facts that "The policy term of multi-corporations is longer than normal","There are sub-limits in policy clause","Insurers have limit of liability" and "The deadline for payment of multi-corporations is longer than normal and the premium will be payed by broker".Next, taking the invitations which have been received by "T" insurance company as samples, we establish a Logistic Regression Model with Reverse Wald Selection Method, then we analyze the influential factors that affect the insurers’decisions of coverage most which eventually leading us to find the model we need. Then we examine both the Goodness of Fit and the Predictive Ability of the model. Finally, we give an example about how to use the model.The main conclusions of this paper are as follows:1.There are many differences between multi-corporations and normal corporations of both the models of risk management and the ways of underwriting;2.The underwriting of multi-corporations is most influenced by three factors----the Deductibles, Loss Ratio and Industries;3. It is a feasible choice for the insurers to apply Logistic Regression Model on analyzing influential factors when they deal with multi-national insurance business;4. With different limitations of probability, the model may result in different rate of the two kind of errors which guiding us to set appropriate limitation of probability to make an improvement of the efficiency as well as bring more profits for the insurers.