| Commercial auto insurance is one major insurance of China's property insurance.Current premium is mainly based on vehicle price without considering different risk according to different driving behavior.As a result,the comprehensive cost of the insurance firm rate is very high,business for most commercial auto insurance is facing the unprofitable line.On the other hand,the pricing is unfair for the customer.The current insurance pricing method is difficult to meet the demand of the new development situation.With the commercial vehicle insurance premium rate reforming,telematics auto insurance,based on the real use of the driver,the insurance price will be more scientific,fair and refinement.The pricing pattern of the telematics auto insurance is consist by 2 parts: one is the basic premium and basic rate,ruled by the insurance firm,with a guideline from the CIRC.Basic part price and basic rate is defined according to the vehicles related factors and this can be found from the given rate table.The other part is the floating premium rate.This is calculated according to the risk assessment of driving behavior.In the meaning,it needs a driving model to value out a driving score,and then the score could be matched with the premium rate.The final premium is calculated by both 2 parts.The floating premium rate will affect the basic premium rate,then affect the premium.Eventually,the telematics auto insurance could fulfill that premium for a bad driving behavior driver is expensive than a good driving behavior driver.Telematics auto insurance has many years history in insurance developed markets,such as Europe and the United States.It's at an early state in China market for the telematics auto insurance industry.In order to have a widely and successfully use,we should aware of the possible risks and find a way to solve them from the beginning.To have a better implementation of the telematics auto insurance,I made a number of recommendations in this pater for the relative parties. |
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