A Study On Motor Insurance Premium Rates Based On Market Principle

In the years before 2003,we had been carrying out the premium rate system that was under strict supervision, and there existed many abuses in the"unified"premium rate system. On Jan 1,2003,the reforms formally began to be implemented on motor premium rates based on the market principle, and come forth a lot of problems. 1,It was hard for the customers to decide what course to take due to the vicious competitions caused by the greatly reduced premium rates. 2,And with the frequently raising of premium rates afterwards which seriously influenced the trust of the consumers in insurance companies as well as the insurance industry.3,The implementation of the new , it has led to the incessantly increasing disputes related to the Compulsory Motor &Third Party liability Insurance (CMI) from May 2004 up to now. Due to the Motor Insurance position in real life and its social influence, it caused a lot of disputes in the society at that time.In order to study problems that Motor Insurance premium rates based on the market principle, the author tries to use the advanced experiences abroad for reference in this article, a comparatively in-depth analysis has been given in this article for the problems arising in the Motor Insurance reforms, using the reformation theorem analysis in the premium rate system management pattern, the Brand's magnate pattern and the theory on system construction. And also a comparatively scientific and reasonable suggestion has been made to the insurance companies, insurance supervision departments and social publics. As for the study on insurance companies, a suggestion had been made on the factors in establishing the premium rates, the product innovation and service improvements etc. Finally regarding the study on the CMI, an analysis has been given to the problems brought about to the insurance companies related to the management and claims settlement from the point of view regarding legislations and management pattern. The cause of the problems has been analyzed and an assumption on a series of coordinating systems has been given. Thus this article is of certain realistic significance.