Aspect of the Bailey''s Minimum Biased Estimation Method: An Empirical Example

• Main Authors: Tzu-Shan Huang, 黃子珊
• Other Authors: Hsien-Chueh Yang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/94458107004285530987

碩士 === 國立高雄第一科技大學 === 風險管理與保險所 === 98 === To ensure the equity of the premium, the charge of compulsory automobile liability insurance is currently based on two principles: personal factors and car factors. In the car factors, we find that the current classification rating system lacks consistency to the principle of equity and justice. Thus, we investigate whether the basic net premium coefficient of compulsory automobile liability insurance employs an appropriate classification and achieves equity whit respect to the car factors. Bailey''s Minimum Biased Estimation are used; BD test and CMH test are conducted to examine the association between the response variable and the explanatory variables. When the estimated basic net premium coefficient and the current one are compared, the results indicate that the current basic net premium coefficients of buses are too high. We also find that the coefficient of self-use trucks should be different from that of commercial-use trucks. In summary, we suggest that the current basic net premium coefficients of compulsory automobile liability insurance are not equitable in charging premium and are not classified adequately.