Analysis of China Motor Vehicle Insurance Business Trends

Abstract

After thirty years’ reform and opening, China has seen a rapid economic development. Along with the country's growing wealth and improved living conditions, citizens have growing awareness of the necessity of insurance, thus the insurance demands increased significantly and the industry has sustained rapid development for a long time. Along with the high accelerated developed of motor vehicle industry, . Motor vehicle insurance has taken 74.6% of total premium revenue of the property insurance industry in 2010. Prediction of motor vehicle insurance premiums has a significant impact on setting company goals and developing company business development plan in this situation. This paper predicts China's motor vehicle insurance premiums of next five years which can provide a theoretical basis for “the 12th five year plan”. According to the characteristics of motor vehicle insurance income, this paper adopted the improved gray forecast model to enhance forecast accuracy.