THE OPERATING EFFICIENCY OF AUTOMOBILE COMPULSORY LIABILITY INSURANCE OF TAIWAN''S PROPERTY AND LIABILITY INSURANCE COMPANY

• Main Authors: Wu, Shing-ching, 吳幸姬
• Other Authors: Jou Gwoduan
• Format: Others
• Language: zh-TW
• Published: 1997
• Online Access: http://ndltd.ncl.edu.tw/handle/68887641986594044492

碩士 === 國立臺灣大學 === 財務金融學系 === 85 === Dec. 14, 1996, the Regislative Yuan passed the new "Automobile Compulsory Liability Insurance Law" and changed the automobile insurance into "no-fault" insurance. Because of the modification, old insurance rate is o more useful to the new one. Besides, the new policy must operating in "no loss no profit" way, it is important to produce a new insurance rate, especially operating expense''s rate. This thesis is trying to find out the proper operating expenses rate of automobile insurance, and the unreasonableness of the old one. At the final, it will present a new way to calculate the new operating expense''s rate. I separate operating expenses into fixed cost and variable cost. In applying regression analysis , I find that 80% of operating expenses is fixed cost and 20% is variable cost. The fixed cost adjusted to the Pricing Index, and the variable cost adjusted to gross premium. In calculating process, I use 18%, 20%, and 21.7% as starting operating expenses, and assume the pure premium will increase by 100%, 150%, and 200% to find out how does the expense''s rate changes? The result is as follows: more high the starting expense''s rate is, more the future operating expense''s rate is. And more the pure premiums increase, lower the future expense''s rate. It is between 7.99% and 13.17%.In order to avoiding the influence of increasing pure premium greatly, I cut 50% in changing variable cost. Then the rate is between 8.88% and 12.55%. Besides, I set the target expenses rate to produce the level cost of every car fot reference.