Research On The Model Of Engineering Insurance Rate Based On Bill Of Quantities

Engineering insurance is not only the most effective ,most widely used risk managementmeasure in international project management, but also one of the supporting measures forBOQ. Developed countries have built perfect insurance system, however, the low ratio ofinsurance coverage, unreasonable insurance premium rate, low loss ratio and masscompensate disputes restrict the development of insurance market in China. During theunderwriting process, the most important job for the insurance company is to determine thepremium rate. Therefore, research on the reasonable determination model of premium rate hasgreat significance for promoting the development of the engineering insurance and improvingthe exist project risk management model. Based on the ratemaking principle, this thesisproposed engineering insurance ratemaking model in Bill of Quantities and combined theBOQ with engineering insurance theory, then applied it to the pure rate making of ContractorAll Risks Insurance or Erection All Risks Insurance, thus provide some computationalmethods and modeling for the ratemaking of engineering insurance.Firstly, this thesis not only introduces the background and research status of theratemaking of engineering insurance, but also proposes the main content and technologyroadmap. Then this thesis studies the basic theory of engineering insurance and generalprinciple, and proposes the pure ratemaking model; combined with the modification methodand the maximum possible loss method, according to the bill of quantity, realized theratemaking respectively and reflect summarily, calculates the pure rate of the project.Secondly, this thesis identified risk with WBS-RBS and expert survey method, andconfirmed the risk factors by combining with all kinds of specification about engineeringinsurance.Again, this thesis classified the loss probability and the impact of the risk factors, andquantitative them through the exports’experience, then the G1 method is used to calculate theweight of each risk factor, thus assessed the risk within the insurance coverage and providedsome data support for the pure ratemaking.At last, with the expected utility theory, under the maximum possible loss principle, bythe formula of applicable rate=base rate*adjustment factor, this thesis calculated theadjustment factor of part-to-item project by the use of expected loss and determined the purerate of part project, then weighted average according to the contract amount and eventuallycalculated the pure rate for the whole project.This thesis studied the application of engineering insurance through an example. Basedon this, this article discussed and summarized the applicability and the improving suggestionsof the model. All this provided a new method for the premium ratemaking and sometheoretical support for the implementation of engineering insurance.