Die Entwicklung der Struktur in der Kraftfahrt-Haftpflicht-Versicherung

Abstract

The paper examines the structural development of motor liability insurance in Germany and concludes that competition leads to a relatively far reaching differentiation of rates which also satisfies individual proposers’ requirements as regards cover and cost. Without such differentiation subsidies become necessary. Once it has been statistically established that the claims experience is considerably heavier in large towns than in smaller localities, it becomes necessary to distinguish between them just as much as between larger areas with differing claims experiences. Not to do so carries the risk that certain insurers specialize in the statistically favourable part of the business. The calculation of average premium rates, which implies the balancing of surpluses in good areas against the inadequate rates in areas with high claims frequencies, leads to a considerable advantage for the specializing insurer, a situation which can only be dealt with by a refinement of the rate structure. This was proved in the Federal Republic where, prior to the refinement of the tariff structure, specializing insurers applying general tariff rates were able to distribute unusually large surpluses by way of bonuses. The author expresses the opinion that it is necessary to differentiate by objective and subjective principles. This is achieved in Germany through the current rate structure, which distinguishes objectively between types of vehicle, power rating, size of home town and type of area. The subjective distinction operates through the bonus-malus system which provides a final correction of the basic premium in the light of the actual claims experience depending heavily on personal traits. In this the German market stays within the limits of possible differentiation drawn by the requirement of forming homogeneous groups which allow averaging by actuarial methods on a practicable and administratively economic basis.