Research On Liability Limit Mode Setting Based On Risk Characteristics

The development of economy and technology promotes the rapid development ofdomestic insurance, it is an inevitable expanding tendency in the scope of insurablerisks. In the insurance practice, the insurance means such as exclusions, deductibles,reinsurance, rate and liability limit are widely used, but the detailed setting is alwaysrelied on subjective experiences,which lacking of scientificity. It is really needed therisk insured and its correlation theory to provide the scientific guidance for theinsurer.This paper analyzes the relationship between risk characteristics and insurancemeans, improves the theory of risk insured for further,combines risk with insuranceschemes. Integrate the object’s risk properties of liability insurance, explains how toset scientific and reasonable liability limit, not only make the liability insurance couldeffectively transfer the risk of objective, but also let the insurance applicant be insuredat a reasonable premium.Liability insurance is one of the important non-life insurance categories, thispaper carries out the research on setting liability limit based on risk insured theory.Firstly,based on risk characteristics,makes detailed analysis on liability risk insuredmeans,investigates the relationship between liability risk insured means and limit ofindemnity. Then, analyzes the relationship between limit of indemnity and liabilityinsurance rate, and combined with the other two types of limit of indemnity toestablish the optimal liability limit mode in order to calculate the theoreticaloptimal limit of indemnity, guarantee per unit of premium can transfer the maximumrisk. Finally, according to the relevant statistical data in recent years as an example,determines the best liability limit according to the optimal liability limit mode whichis founded in the paper, verifies the availability of the mode.