Research On The Pricing Factors Of The Market Oriented Reform Of Auto Insurance Rate

In 2015, the commercial auto insurance rate market reform has finally taken a substantial step. China Insurance Regulatory Commission has conducted pilot reform in the pilot areas of two batches. According to the mechanism of market regulation, the reform of commercial auto insurance premium rate, which is based on the pricing of the insurance company and the development of auto insurance rate, will expand the insurance company’s autonomy. Insurance regulatory authorities focus on the solvency of insurance companies to implement the supervision, and earnestly safeguard the interests of consumers of insurance. After the reform of auto insurance premiums increased, which will promote the decline in commercial auto insurance rates, and promote the further rise in the rate of auto insurance claims, resulting in more obvious market polarization. Accurate product pricing can make the insurance company to improve the market competitiveness in the auto insurance reform.This article first elaborates the background and the target of the commercial auto insurance rate market reform and reform content. That is the reform of the terms of auto insurance, auto insurance rate reform and the reform of insurance regulation. Analysis of the possible changes in the market after the auto insurance reform in China. By comparing the process and characteristics of the market oriented reform of the mature auto insurance market. This paper introduces the "from man", "car" mode and management form of the insurance market in the United States, Germany and Japan. So as to determine that auto insurance premium rate is an important means of insurance companies in the market competition to win.Secondly, this paper adopts the method of data analysis and calculation, and focuses on the relevant pricing factors of auto insurance premium rate after the reform of auto insurance rate in China. The choice of pricing factors is significant important for the innovation and the difference of auto insurance products.The main content of the auto insurance reform is to evaluate and optimize the rate factor. In the benchmark pure risk premium, we first use the principle of different pricing according to different models, and the car classification is reasonable estimated, according to integer ratio coefficient released by the China Insurance Association released. In the NCD coefficient, we introduce the shortcomings of the previous NCD coefficients and the variation of the NCD coefficients. For the rate pricing factors independently developed by insurance companies, we analyzed the independent channel coefficients and independent choice of underwriting factor through the actual data of the insurance company. Insurance companies can be priced according to different payment costs and the cost of sales channels, so that the insurance company independently developed a reasonable premium price within a certain range. With the development of the Internet, the pricing model of UBI will become the innovation and development direction of auto insurance pricing. This section also makes a relevant introduction.Finally, after the auto insurance product pricing is determined, we have proposed the suggestions for the insurance company to support other management strategies, including the channel innovation, the promotion service and the control cost. Auto insurance pricing will force insurance companies to actively enhance product innovation, service level, risk identification and cost control, to find solutions to the problem of poor quality of data, pricing power and other issues. Insurance companies must continue to improve the level of auto insurance pricing and develop a reasonable price of auto insurance. Only in this way can they finally form a complete commercial auto insurance market pricing mechanism.