Research On The Fairness Of Commercial Vehicle Insurance In China Based On Gini Coefficient Method

The emergence of the Lorenz curve and the Gini coefficient has gradually become an internationally important indicator for measuring the fairness of income distribution in a country or region.From the perspective of the Lorenz curve,if the income of the top 40% of a country or region accounts for 40% of the total income of the country or region,then the income distribution is fair;The income of the top 40% of a country's population accounts for less than 40% of the country's total income,indicating that this income distribution mechanism is unfair.The Gini coefficient is an indicator for quantitative determination of fairness.According to the relevant regulations of the United Nations Development Programme,the Gini coefficient is divided into five sections,below 0.2 represents the distribution height average,between 0.2-0.29 represents the distribution average,and between 0.3-0.39 is a relatively reasonable allocation,0.4-0.59 means that the distribution gap is large,while above 0.6,the distribution gap is large.With the development of social economy,the scope of use of the Gini coefficient has been continuously expanded.In the insurance industry,the Gini coefficient is used to explore the fairness of the distribution of insurance mechanisms such as medical insurance and pension,and the research on the fairness of the insurance pricing mechanism is very limited.In 2011,David Cummings et al.first proposed applying the Gini coefficient to insurance to measure the fairness between premiums and claims.It can be understood as: the policy holders are sorted according to the amount of the premium paid from low to high,and the proportion of the total compensation paid by the policyholder who pays the premium of 40% of the total premium is also 40%,indicating that the pricing mechanism for premiums is fair;on the other hand,if the policyholders who pay premiums account for 40% of the total premiums receive less than 40% of the total claims,then the pricing of premiums The mechanism is unfair.The study by David Cummings et al.provides a new way to measure insurance fairness.The deepening of the market-oriented reform of auto insurance rates has led to the expansion of the independent pricing range of insurance companies.In order to enhance their competitiveness,in order to attract more quality customers,while reducing the insurance company's claims and paying as much as possible to the consumer,the insurance company explored many methods,and UBI appeared at this time.The emergence of UBI auto insurance helps insurance companies to screen high-quality customers and make refined and personalized pricing according to customers' driving habits,thus reducing the payment.Therefore,although UBI started late in China,it has developed rapidly.However,whether the emerging UBI auto insurance is more fair than the traditional auto insurance,the current relevant literature mostly relies on prior assessment,predicting losses based on risk factors such as driving behavior,and comparing the losses and premiums that have occurred.The literature is very limited.This paper is based on the Gini coefficient proposed by Cummings,which can measure the fairness between premiums and claims,and the UBI auto insurance,which is developed and developed rapidly in the current auto insurance market with the deepening of the commercial auto insurance rate market reform,through the correlation of the Gini coefficient.The introduction of the theory,based on the Gini coefficient,based on the relevant auto insurance data of an insurance company,explores the fairness between the current premium and compensation of China's auto insurance.Firstly,based on the auto insurance data,the pricing model is used to predict the traditional auto insurance and UBI auto insurance premiums,and then compare the fairness between the traditional auto insurance and UBI auto insurance premiums and claims based on the measured premiums and known claims data.Analyze the reasons for the differences and draw relevant conclusions.The first chapter is the introduction.This paper first introduces the Gini coefficient as an important indicator to measure the degree of fairness,and Cummings introduces the Gini coefficient into the insurance industry for the first time to measure the fairness between premiums and claims;then introduces the range of insurance companies' independent pricing with commercial auto insurance rates.In order to better implement refined and personalized pricing and promote pricing fairness,UBI car insurance based on driving behavior began to develop in the domestic auto insurance market and developed rapidly,thus expounding the writing background and writing significance of the paper..Secondly,from the aspects of fairness,auto insurance pricing mechanism and Gini coefficient and Lorenz curve,the literature research on the development of related research at home and abroad is carried out.After that,the research ideas and research methods of this paper are introduced in detail,and the paper may be The existing innovations and deficiencies are elaborated.The second chapter is the theoretical basis of insurance fairness and Gini coefficient.This chapter first introduces the current mainstream Adams fair theory,and expounds the new fair theory and fairness difference threshold theory developed by other scholars based on Adams fairness theory;then the related concepts of Lorenz curve and Gini coefficient Introduce and compare and analyze several common methods for estimating the Gini coefficient.The third chapter is the development of the commercial auto insurance market.Firstly,it introduces the development history of commercial auto insurance,and introduces the development status of commercial auto insurance from two aspects of premium income and payout expenses.After that,it expounds the process of marketization reform of two commercial auto insurance rates.Finally,UBI car insurance is introduced from the related concepts,development origins and development status of UBI.The fourth chapter is the empirical analysis of the fairness of traditional auto insurance and UBI auto insurance.As the core chapter of this paper,the data source is introduced firstly,and the data processing and description are carried out according to the characteristics of each variable index.At the same time,the descriptive statistics of each variable index information of the data are carried out.The second section is empirical analysis.Firstly,according to the different pricing methods of traditional auto insurance and UBI auto insurance,the variables are divided into two categories.Secondly,according to the relevant information of the data,the appropriate pricing model is selected to predict the premiums of the two types of auto insurance,and then according to the forecast.The premium data and the existing claims data calculate the Gini coefficient of the traditional auto insurance and UBI auto insurance respectively.Finally,based on the calculated Gini coefficient,the fairness of traditional auto insurance and UBI auto insurance is compared,and the causes of the differences are explored and analyzed.The fifth chapter is the conclusion and outlook.Firstly,according to the thinking of the text,the research methods,empirical process and empirical results are summarized.Secondly,the empirical results are forecasted from three aspects: perfect driving behavior scoring system,perfect auto insurance data sharing platform,and strengthening UBI privacy protection.Possible innovations are:1.Innovation of research methodsAt present,the related research on insurance Gini coefficient and Lorenz curve mainly focuses on pension insurance and medical insurance.The method used is also to explore the fairness of the protection mechanism such as pension and medical care according to the income of residents,and to measure the fairness of the guarantee mechanism such as pension and medical care.The related research on the fairness of insurance pricing is very limited.This paper makes changes based on the Gini coefficient,replaces the population with premiums,pays for the replacement of income,establishes a model,and then conducts empirical analysis on the popular UBI products in China's current auto insurance market,and then the traditional Car insurance and UBI auto insurance pricing fairness is compared and explored.2.Innovation in research perspectiveAt present,the relevant literature on UBI auto insurance is mostly the research on the driving behavior scoring system,the comparative analysis of the current rate determination method of UBI auto insurance,and the research on the UBI auto insurance rate determination method,and the UBI auto insurance premium and payment.The literature on fairness studies is very limited.As for the fairness of traditional auto insurance and UBI auto insurance,it is mainly based on the research on the factors determining the rate.This paper innovatively studies UBI auto insurance and traditional auto insurance from the perspective of fairness between premiums and claims,and compares and analyzes the differences between the two.