The Construction of Car Insurance Business Franchise Model

Abstract:

Franchise, as the name suggests, is the limit. According to the conditions of the insurance ,the insured should be responsible for the amount of the loss. Because the franchise can eliminate many small claim, and can reduce the premium. Franchise is widely used in the property, health and car insurance. In recent years, with the increasing number of cars, the number of traffic accidents, more and more, accompanied by the insurance market is also maturing. In the traffic accident is the role played by the insurance can not be ignored, and in the prevention of traffic accidents on the insurance companies also have their own role - deductibles. Deductibles allow car drivers to pay more attention to traffic laws, thereby reducing the occurrence of small incidents. The establishment of the quota-free profit is to reduce claims cost insurance companies an important tool. However, the deductible value of the determination is caused by the strong reflection of the community, but also increased the insurance company and the conflict between clients. This article through to one insurance company three years of the data and found that the claim, and statistical law claims its three-year claims the results. But at the same time, through the establishment of mathematical formula, get a franchise values.

• Periodical: Advanced Materials Research (Volumes 393-395)
• Pages: 416-419
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.393-395.416
• Online since: November 2011
• Authors: Hui Che, Xiao Ge Wang
• Keywords: Expect Utility, Franchise, Maximization Profit, Motor Vehicle Insurance

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DOI: 10.4337/9781781950173.00012