Vehicle Insurance Customer’s Risk Characteristics And Risk Control

The business scope of Chinese property insurance companies mainly involves motor vehicle insurance, non-auto insurance and life insurance, of which the vehicle insurance holds the largest premium scale. Its business conditions will directly affect the companies’operating scale and profits. In recent yeas, due to the uniform rate of China’s motor vehicle insurance market, small and medium insurance companies has no competitive advantages not only in service quality, but also in premium compared to PICC, Ping An Property Insurance Company and Pacific Property Insurance Company, which leads to highly market concentration eventually. At the end of November2010, the above three old insurance companies totally share67.96%of the vehicle insurance market. In the face of such a situation, many small and medium insurance companies start to ignore customer risks and grab customer resources blindly, which brings out continuously risen of vehicle insurance loss ratio, over budget expenditure and finally affect the companies’ normal operation and sustainable development. Therefore, how to strengthen the risk management and control of motor vehicle insurance in the result of both to reduce vehicle insurance loss ratio and maintain a good pace of development, breaking the old three obstacles, has become a problem urgently need to be solved by all the small and medium insurance companies in domestic currently.On the basis of the theory of risk management, this article analyze the internal management risks and external customers’ risks which the insurance companies face to during vehicle insurance business, and focus on an analysis of relationship between a number of risk characteristics and risk indicators in external customers’ risks, and propose research hypothesis.My study selected a representative insurance company in Ningbo market as a research object, using the method of variance analysis to calculate and analyze the data under the various risk characteristics, combined with the history customer data from this company’s motor vehicle insurance, and use the result obtained to test the proposed research hypothesis in confirming whether each individual risk characteristics has significant impact on claim frequency and claim loss ratio.In the end of my study, this article put forward relevant risk control suggestions about motor vehicle insurance for insurance companies based on the research results, and also provide a theoretical basis and reference example of risk management and control for other small and medium insurance companies.