Research On Theory And Method Of Rate Classification In Automobile Insurance

Chinese automobile insurance industry has developed fast since the 21 century along with the boost of automobile industry.Nevertheless Chinese auto insurance industry has shadowed by three problems i.e.low eddicency,repetitive insurance products and twisted price system,which hinder auto insurance industry's further and sustainable development.Accordingly it is of great importance to explore the theory and approaches to establishing reasonable price system;and it's also equally important to explore how to establish technogically fair and stable rate making system; for the exploration can enhance the rate market's opening-up and it can help achieve the auto insurance's scientific operation and promote Chinese auto industry's health growth.Theoretically based on economics,mathmatics and statistics,from the perspective of qualitative and quantitative analysis,this paper expounds the following issues by means of standard research and experimental research.The principle and approaches to rate making of property premium.Based on the relerant financial field's establishment of premium,the paper explores the theoretical origin of premium's establishment.Meanwhile it also carries on research on principles and approaches to premium's rate making.Furthermore it analyses the application and limitation for various premium's rate making.It also sheds light on the fundamental framework for rate making system.Classification rate making in risk grading system consisting of choice of classification variable and grade making variable.This paper also expounds the criteria of selecting risk classification variable.It illustrates the differences and similarities among three analytic methods for establishment of grade variable,namely qualitative analysis,fuzzy mathmatics analysis and quantitative analysis.It focuses on the choice of mathmatics model in quantitative analysis.Moreover it points out the respective advantages and disadvantages in the three above-mentioned models.Issues on auto insurance's rate making in generalized linear model.It illustrates the difference and similarities between two trate making procedures in generalized linear model and linear regression model.Taking the auto insurance cases into consideration,it also explores the approaches to rate making by means of generalized linear model.Experimental research based on auto loss's statistics,it tests on theory and approach to classification rate making via generalized linear model.Furthermore it explores the problems and their solutions in the application of generalized linear models on the basis of conclusion reached in experimental research.From the perspective of combining ecomomic analysis with statistic theory,the paper explores the characterisiics for auto insurance rate making in the application of generalized linear model.It reaches conclusions different from other relevant researches.It is an exploration on Chinese rate making in non-life insurance field's rate making.