Associate Professor Xiang Hu, a researcher of the base, has published a collaborative paper titled "The Consequences of Road Traffic Accidents and the Construction and Evaluation of the Reward and Punishment System of China's Traffic Insurance " in  Insurance Study

Abstract:

In order to achieve high-quality development of auto insurance, China Banking and Insurance Regulatory Commission issued the Guiding Opinions on the Implementation of Comprehensive Reform of Auto Insurance in September 2020, requiring to improve the protection level of traffic insurance, and improve the scientific and fair rate determination of traffic insurance by adding regional floating factor in the reward and punishment system. The consequences of road traffic accidents caused by the insured are highly correlated with their risk level, which is not taken into account in the current reward and punishment system. According to the Notice of the Ministry of Public Security on revising the Classification Standards of Road Traffic Accidents, this paper divides road traffic accidents into minor, general and major accidents according to their consequences, and constructs a new reward and punishment system based on regional characteristics and the number of claims. The relative average premium level and steady-state change rate were selected to evaluate the newly constructed reward and punishment system, and a group of actual compensation data of traffic insurance was taken as an example for empirical analysis. The results show that the reward and punishment system considering the consequences of road traffic accidents can better distinguish risks and optimize the effectiveness of the posterior rate determination.

Key Words: road traffic accident; Heavy traffic insurance; Punishment and reward system; Posterior rate;

Link: https://bxyj.cbpt.cnki.net/WKH/WebPublication/paperDigest.aspx?paperID=8b671626-fba0-48d7-8101-dc5a02570089

Teacher profile

Xiang Hu, associate professor at the School of Finance, Zhongnan University of Economics and Law, and "Wenlan Young Scholar" at Zhongnan University of Economics and Law. His research interest covers actuarial accounting and risk management. ,  He has published more than 20 papers in Insurance Mathematics and Economics, ASTIN Bulletin, Scandinavian Actuarial Journal, North American Actuarial Journal, Statistical Research, Insurance Study and other academic journals. He has presided over and participated in a number of National Natural Science Foundation projects and National Social Science Foundation projects.