Research On The Impact Of Government Regulation On The Loss Rate Of Auto Insurance

As one of China’s largest scale and history non-life insurance,Auto insurance has been several changes in government regulation or market reform,and shown several characteristics in different stages.Based on the past research report of auto insurance and the policy issued by the CIRC,the auto insurance market in China can be divided into four stages from 1999 to 2015.This paper want to combine the characteristics of each stage with the loss ratio of Auto insurance,because loss ratio is the most direct reaction of premiums and compensation of auto insurance.Based on this line,this paper would like to discuss the impact of government regulation and the stringency of government regulation on the loss ratio of Auto insurance,and giving some simple recommendations,by using the panel date of each province(municipality)from 1999-2015.First,I would like to divides the history of auto insurance into four stages from 1999 to 2015 of each province(municipality),namely,the first government supervision stage(1999-2003),the first marketization period(2003-2006),the second government supervision stage(2006-2010)and the second marketization period(2010-2015),and fully expounded the characteristics of the four stages,in order to lay the theoretical basis that why the car insurance claims rate changes in different stages.And then,this paper would deals with the data from 1999 to 2015 in the provinces(municipalities)through the panel data model,and sets out three assumptions based on previous findings:government regulation and the stringency of government regulation have an impact on car insurance claims;and these assumptions were be verified by empirical test.Finally,I would like to give some simple advice on government regulation,actuarial capacity building,marketing channel,solvency supervision and regulatory cooperation,based the result of empirical test and situation Auto insurance.At the present,foreign scholars have done a lot of research on government regulation in loss ratio and lost cost of Auto insurance,while domestic scholars mainly focus on the marketization of Auto insurance,and there are few articles on the research that the impact of government regulation in loss ratio or loss cost.I hope to use the white-space as the starting point,to researching the impact of government in auto insurance’s loss ratio or loss cost,and put forward positive measures to ensure that the development of China’s auto insurance would be healthy and stable.