Vehicle Insurance Reward and Punishment Mechanism: BMS System

Author: Shao Xueqing / Country: Mainland China
Publisher:
Publish Date: 2006-08-01
Features: The price of motor vehicle insurance is not only related to the interests of the policyholder but also closely linked to the fate of the insurance company. The determination of premiums involves two aspects: one is the establishment of the basic premium, and the other is the adjustment of the renewal premium, among which the latter is more important and is determined by the reward and penalty mechanism. This book focuses on the research of BMS (Base Rate System) in motor vehicle insurance, conducting systematic studies on BMS based on claim frequency, BMS considering claim size, and BMS incorporating factors such as violations and fraud. It also proposes a new application model of BMS considering claim size, introducing concepts such as the superposition distribution, violation reward and penalty coefficient, fraud reward and penalty coefficient, and elastic deductible. Additionally, using actual data from insurance companies, empirical analysis was conducted, yielding valuable conclusions that can provide important references for further theoretical research and insurance practice. The book also systematically explores issues such as how to improve the fitting accuracy of loss data, how to introduce claim size and claim frequency into the reward and penalty system (BMS), and how to consider violations and fraud in the reward and penalty system.