Mileage-Based Pricing in Vehicle Insurance Products:China as a Case Study

• 作 者: CHEN Dongmei Duan Baige
• 机 构: Department of Insurance, Fudan University School of Economics, 600 Guoquan Road, Shanghai, China, 20
• 出 处: 清华大学
• 发表日期: 2012年5期
• 关键词: generalized linear models driving mileages vehicle insurance cross-subsidies uni

　　Since there is no mileage statistics in the database of almost all property insurance companies in China currently,the paper proposes to study the impact of driving mileages on net premiums of vehicle insurance innovatively.The paper makes use of the data of 31 provinces,municipalities and autonomous regions in China from 2000 to 2009 and makes an empirical analysis to study the long-term stable equilibrium relationship between the accident losses and highway mileages by using the panel unit root test and co-integration test of econometric methods.The result shows that there is a significant positive correlation relationship between the accident losses and highway mileages.To some extent,the stable relationship can be regarded as a valid reference of the relationship between net premiums of vehicle insurance and driving mileages.Moreover,the paper proposes some feasible programs to consider the relationship between net premiums of vehicle insurance and driving mileages,and provides further proposal for mileage-based pricing in vehicle insurance products of China.The results of the paper have important theoretical significance and practical value for driving mileages to be introduced and developed into GLM pricing in China’s vehicle insurance,and also provide a reference to settle our transportation,energy and environmental problems.