A Study About Determine The Model Of Auto Insurance Rates

Since joining the WTO, Chinese economic development rapidly, which has becomethe world’s second largest economy. Century car on ordinary people began to enter thehome, car ownership in China in recent years, more and more people have car.Automobile insurance accounted for more than half of it in the development of China’sinsurance industry, which is very significant in particular non-life insurance marketimpact. However, Chinese automobile insurance is not high operating efficiency ofinsurance companies, scientific and rational way of determining the rate of autoinsurance claims is very important for the healthy development of China’s auto insuranceindustry also has positive far-reaching significance. At the same time the development ofother financial sectors also have a great role in promoting the upgrade.This article based on probability theory, mathematical statistics and the basic theoryof stochastic processes, also based on actuarial principles systematically studied themodel of automobile insurance ratemaking. First of all, I introduce the background andsignificance of this topic, so far research status; Secondly, I introduce auto insurancerates in the basic concepts and theories are introduced, including premiums constitutedratemaking principle and the law of large numbers and the central limit theorem and thegeneral approach ratemaking. Once again I introduce a single analysis, the minimumdeviation method, multiple linear regression rate pricing and other traditional methods,analyzes the limitations and shortcomings of these traditional methods. Finally, Ihighlight the generalized linear model and applied research, analyze its strengths andweaknesses. At last, a summary is also put forward some constructive comments andsuggestions.