The test and calculation of the underwriting cycle in property-liability insurance of China

  • Manying Bai*
  • , Rui Zhao
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The supply and demand of insurance interact with each other. Generally speaking, the result of this interaction is the appearance of underwriting cycle with cyclical fluctuation of insurance premium and the supply and demand of insurance as its main characteristic. Based on the ratios of premiums-to-claims data, the research of this paper sets up a recession model to test the existence of the underwriting cycle in property-liability insurance of China and calculate its length. We found that, first, the underwriting cycle does not follow second order auto regression process. Second, according to the result, the length of underwriting cycle in property-liability insurance of China is 1.83 year. It plays an important role for the development of insurance of china to study internationally the actual situation of the underwriting cycle and take corresponding measures to stabilize and mitigate the cyclical fluctuation of insurance supply and demand.

Original languageEnglish
Title of host publicationProceedings - CIS Workshops 2007, 2007 International Conference on Computational Intelligence and Security Workshops, CISW 2007
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages600-603
Number of pages4
ISBN (Print)0769530737, 9780769530734
DOIs
StatePublished - 2007
Event2007 International Conference on Computational Intelligence and Security Workshops, CIS 2007 - Harbin, Heilongjiang, China
Duration: 15 Dec 200719 Dec 2007

Publication series

NameProceedings - CIS Workshops 2007, 2007 International Conference on Computational Intelligence and Security Workshops

Conference

Conference2007 International Conference on Computational Intelligence and Security Workshops, CIS 2007
Country/TerritoryChina
CityHarbin, Heilongjiang
Period15/12/0719/12/07

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