Data-driven Internet Property Insurance Risk Analysis And Its Pricing Model

With the rapid development of data-driven technologies in recent years,many innovative business models such as Internet insurance pricing have been spawned,which have brought technological innovations to related industries and brought new development challenges.Different from the traditional pricing of Internet insurance products,due to the limitations of their own size and technical,it is particularly difficult for small and medium-sized insurance companies to obtain concise and effective pricing data in the user’s redundant data group,which makes traditional insurance actuarial pricing unable to satisfy the market.With huge demand,insurance companies have to explore new pricing methods.In addition,due to the late start of Internet insurance and insufficient historical data,there is also a greater risk in designing an insurance product for an Internet insurance system.Therefore,in this case,how to quickly and accurately carry out insurance pricing for small and medium-sized insurance companies has become an urgent problem to be solved.Therefore,this thesis conducts research on the risk factors of Internet property insurance as a starting point,identifies the insurance risk factors that small and medium insurance companies have in the actual business process,and further explores the ones that have the greatest impact.Under the constraint of risk attribution,the data-driven automatic decision-making pricing model suitable for small and medium-sized insurance companies is then explored.Based on the latest domestic and foreign property insurance risk information and pricing research results,this thesis summarizes the risk characteristics of Internet insurance companies and conducts insurance risk analysis by studying Internet insurance risk factors;then taking the motor vehicle insurance with relatively obvious option structure characteristics as an example,after integrating and refining user information,firstly comprehensively consider the characteristics of Internet property insurance,insurance types of insurance treaties and explore the options structure it has,and innovatively introduce option pricing into the application field of Internet insurance pricing,which followed by non-arbitrage principle,European option pricing and Monte carlo Numerical simulation,etc.We build an Internet property insurance pricing model and finally the Monte carlo numerical simulation results are analyzed to verify the feasibility of the model.The results show that the automated decision-making model driven by this data can achieve the purpose of providing Internet property insurance pricing decisions for small and medium insurance companies,and can provide insurance companies with pricing decision references.