The Pricing Model for Voluntary Auto Third Party Liability Insurance under The New Compulsory Auto Liability Insurance System

• Main Authors: Chich-Yen Wang, 王志彥
• Other Authors: Chyen Chen
• Format: Others
• Language: zh-TW
• Published: 2000
• Online Access: http://ndltd.ncl.edu.tw/handle/72347524390613879815

碩士 === 國立政治大學 === 風險管理與保險學系 === 88 === Abstract Cause the Legislation Yuan passed the compulsory auto liability insurance bill in 1998, we must have a new actuarial pricing of voluntary auto third party insurance. However, all domestic insurers haven’t revised the rate because the absence of the empirical loss data. In addition, only a fewer researches have focused on the actuarial model of this type of insurance. In this paper, we will investigate the pure premium calculation of the voluntary auto insurance, and outline the appropriate model construction procedures. The data we use are not empirical loss data, we calculate the pure premium by the simulated data. The procedures of this study are summarized in the following: (1) Find the possible loss distribution of voluntary auto third party insurance policy. (2) Estimate the parameters of the loss distribution by the maximum likelihood estimate method and the special method of lognormal distribution. (3) Calculation the pure premium of voluntary auto third party insurance. (4) Calculation the increased limits factor(ILF)by two trend functions , and compare the results of two trend functions. (5) Finally, we examine the gross premiums of the voluntary auto third party insurance and compare our results with the actual voluntary auto liability insurance premiums. Altogether, we hope that this paper could be beneficial to the actuaries and also provide suggestions for the government surveillance.