Research And Design On The BMS In Automobile Third Party Liability Insurance

With the living standard improving, automobile consumption has become a hot spot today. The demand of automobile insurance is increasing as the number of automobile is increasing, and automobile insurance has always been the biggest property insurance in China as well as in other countries. Whether the automobile insurance being operated well is relating to the earnings of insurance companies directly. Being one of the important competitive methods, BMS has become a more and more important way.The Bonus-Malus System (BMS )is a discount in the premium which is given on the renewal of the policy if no claim is made in the previous year. The first part of this dissertation uses the data of claiming which were supplied by an insurance company in China to develop an optimal BMS which has limited grades (24 grades), and an application model which has 8 grades. At the mean time, we build up a BMS model that considers the number and size of claim for compensation and makes an empirical analysis. Also we build up an application model having 8 grades, and compare their index of penalization of the three application models. The second part is analyzing the BMS of three property insurance companies in China. And the third part is analyzing three common problems on System Dynamics by building up three models.Finally, we try to find out some problems in China's BMS based on the results above, and offer some suggestion for BMS of China's automobile insurance.