Research On Auto Premium Pricing Based On Auto Rating System

With the development of the automobile industry and the continuous improvement With the development of the automobile industry and the continuous improvement of people's income level,China's car ownership has been increasing year by year,and the types and brands of cars have been increasing.In order to promote the healthy and sustainable development of the automobile market,the marketization reform of the commercial auto insurance premium rate has also been continuously promoted.New technologies such as Internet of vehicles and new energy have emerged continuously,which make the traditional mode of determining auto insurance rates unable to adapt to the changing needs of the market and promote the continuous reform of commercial auto insurance rates.With the development of the auto insurance premium rate reform,the auto insurance market competition is increasingly fierce,the existing auto insurance premium rate determination model is difficult to adapt to the diversified development needs of the auto insurance market,China's commercial auto insurance premium rate differentiation must be accelerated in order to achieve a healthy and sustainable development.China's current auto insurance rate pricing is based on the purchase price of a new car as the main factor in determining the auto insurance rate.With the advancement of the rate reform,the auto insurance rate has been introduced into the process of determining the auto insurance rate by "from person to person" factors,such as payment by mileage,etc.However,the pricing of different models based on vehicle model differences has not been fully introduced so far.Many large insurance companies have set up special vehicle research departments to compare and analyze various models in the vehicle market,summarize the differences between different models,and apply the analysis results to the determination of vehicle insurance premium rates.In China's commercial auto insurance market,the model has not been fully considered in the auto insurance premium rate determination.The car classification is not detailed enough,and the differences between different brands and different models have not been fully considered.Therefore,the auto insurance premium rate determination model is relatively single.This leads to the purchase of the same price of the vehicle,although the insurance premiums are basically the same,but the insurance companies actually bear the risk may be very different,the last for the higher risk of the vehicle often bear more than the insurance premium estimates of the risk range.Only a few companies are able to maintain the balance of income and expenditure.The underwriting profit of auto insurance business has been maintained at 2%-3% for many years,while the profit of foreign countries with mature insurance market has been maintained at 8%-10%.The introduction of model pricing into China's auto insurance premium rate determination will to a great extent promote the premium determination to be more scientific and differentiated,and help insurance companies to achieve profitability in corporate operations.Firstly,this paper expounds the current situation and existing problems of determining the premium rate of China's commercial auto insurance market.Then,it summarizes the model of car insurance rate determination based on model classification pricing,and introduces the experience of overseas application.Then,it analyzes the basis and attempt of promoting model classification in China,and provides the direction and thinking for the implementation of model classification pricing in China's commercial car insurance market.Finally,the paper puts forward some Suggestions for the improvement of the classification pricing model and some problems that may be encountered in the process of implementation.This research has certain promotion significance to the marketization reform of China's commercial auto insurance expenses.