Vehicle Insurance Reward and Punishment Mechanism -- BMS System

Author: Shao Xueqing
Publisher:
Publish Date: 2006-08-01
Features: The price of motor vehicle insurance is not only related to the interests of policyholders but also closely linked to the fate of insurance companies. The determination of premiums involves two aspects: one is the establishment of basic premiums, and the other is the adjustment of renewal premiums, among which the latter, determined by the reward and penalty mechanism, is more important. 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 comprehensive BMS incorporating factors such as violations and fraud. It also establishes a new application model of BMS considering claim size, proposing concepts such as superimposed distribution, violation reward and penalty coefficient, fraud reward and penalty coefficient, and flexible deductible. Additionally, using actual data from insurance companies, empirical analysis is conducted, yielding valuable conclusions that can provide important references for further theoretical research and insurance practice. The price of motor vehicle insurance is not only related to the interests of policyholders but also closely linked to the fate of insurance companies. The determination of premiums involves two aspects: one is the establishment of basic premiums, and the other is the adjustment of renewal premiums, among which the latter, determined by the reward and penalty mechanism, is more important. 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 comprehensive BMS incorporating factors such as violations and fraud. It also establishes a new application model of BMS considering claim size, proposing concepts such as superimposed distribution, violation reward and penalty coefficient, fraud reward and penalty coefficient, and flexible deductible. Additionally, using actual data from insurance companies, empirical analysis is conducted, yielding valuable conclusions that can provide important references for further theoretical research and insurance practice.