Research On The BMS Of Automobile Insurance

With the increase of automobile, traffic safety has become a important public safetyproblem. Just for this, automobile insurance has got fast development. In our country theautomobile insurance even can be called "leading insurance" among the various insurances,naturally got more and more attention by each insurance company and the insuranceregulatory commission. In order to operate automobile insurance better, to build a reasonableand normative market competitive mechanism, rate reform issue has been put forward againand again. Bonus-Malus System reform as an important change of rate reform is worthy toresearch by further. This paper focused on the theory of construction, design and analysis ofthe BMS will do a lot of work:Firstly, start from the theory of BMS construction. Based on the previous research, a newrisk measures named Value at Risk, and a new premium calculation model named Value atRisk Premium Calculation Model will import which is used to quantitative describe the riskpremium. At the mean time, a fully verified will give from four characters of premiumcalculation principle to the Value at Risk premium calculation model. As following, assumingthat claim amount and claim frequency distributions following a certain distribution andkeeping independent, using the Value at Risk premium calculation model to instruct a newBMS construction model and proved by theory analysis. Secondly, Based on the sourceobservation data, verifying and analyzing the risk distribution of automobile insurance marketby goodness-of-fit method, and assuming the source data can enough reflect the real conditionof automobile insurance market. Combining the numerical simulation method research theBMS construction model by numerical case. And then, a new BMS is constructed, and aseries of analysis of its stability and regulation will be done in the next. Finally, based on thestability and severity of BMS, a detailed analysis and comparison is made among the newBMS, Beijing and Shenzhen BMS.Through the above work, we can make a comprehensive analysis and discussions aboutthe development and situation of automobile insurance BMS in our country. Based a practical calculation example to establish a simple BMS, and put forward some new ideas andsuggestions, about the BMS research.