Research On The BMS Of Automobile Insurance

I. SignificanceThe BMS ( Bonus - Malus System ) is namely prize and punishment system, in our motor vehicle insurance it is called to be no-claim bonus system. It is like this a kind of widely adopted system in the motor vehicle insurance: in the next insurance year, the policyholders who have some claim records will be punished by the premium from the insurance company, while those who have no claim record will be rewarded. The insurance practice has proved that, in the motor vehicle insurance, the BMS is very necessary, and the meaning is important.1. NecessityThe risk levels of the different policyholders are different, that is to say, in the same term of insurance, the numbers of claims of different policyholders are not always equal, and we call it heterogeneity of the risk. To the policyholders with different levels of risk, the premiums the insurance company takes in are also different. When establishing the insurance fee, insurance company mainly considers policyholder's age, sex, occupation, habitation, the use and category of the vehicle...etc, and these variables are called priori variables. The reason why priori variables are adopted is to make the policyholders who are divided in the same group has homogeneity of their risks.But, even we chose such variables to divide the policyholders; there is still some heterogeneity of their risks in each group. The main reasons are: the first, some characters influencing the risk of driving and the number of accidents that may be happen are not measurable, such as the well- trained degree of the drivers, the concentration degree of the attention during the driving hour, the speed of the reaction and the accuracy of the judgment in the nervous circumstance; The second, because the classification variables are limited, the measurable characters of the risk are impossible to be contained in these variables; The third, because of the existence of the moral risk, it very difficult to affirm that the classifying of the policyholders is right. For example, in some countries the policyholders are requested to tell their mileage...