For insurance products sold by life insurance companies, the leveling method is usually used for premium calculation, that is, during the payment period, a fixed payment amount is always maintained to replace the natural premium whose mortality increases with age. Due to the adoption of flat premium, the premium paid in previous years was too much, and the premium income in the following years was insufficient. What is insufficient in the next few years can be made up by the surplus in the last year.

equilibrium rate of exchange

Balanced rates do not increase premiums with age. For example, when you are 20 years old, you pay 2000 yuan that year, and the premiums you pay in the future are all 2000 yuan. It's the same, but the payment is different because of different ages when you apply for insurance. The balanced rate is mainly used for long-term life insurance.

Expansion: insurance rate

The premium rate is the ratio of the premium payable to the insured amount. (Rate = insurance premium/insurance amount) The insurance rate is the standard for the insurer to charge the insurance premium from the applicant according to the unit insurance amount. When an insurer underwrites an insurance business, it multiplies the insurance amount by the insurance rate to get the insurance premium that should be charged for the business.

basic concept

Insurance premium refers to the expenses paid by the insured to transfer the risk and obtain the compensation (or payment) responsibility undertaken by the insurer within the agreed scope of responsibility; It is also the fee charged by the insurer from the insured to bear the agreed insurance liability. Insurance premium is the main source of establishing insurance fund and the economic basis for insurers to fulfill their obligations.

The influencing factors of calculating insurance premium include insurance amount, insurance rate and insurance period, which are directly proportional to insurance premium, that is, the greater the insurance amount, the higher the insurance rate or the longer the insurance period, the more insurance premium should be paid. The change of any one of these factors will cause the increase or decrease of insurance premium. The unit of insurance amount is generally 65,438+0,000 yuan or 65,438+0,000 yuan, so the insurance rate is usually expressed as one thousandth or percentage.

Insurance rates generally consist of pure rates and additional rates. Traditionally, the rate composed of pure rate and additional rate is called total rate. The pure rate, also known as the net rate, is the main part of the insurance rate and is determined according to the loss probability. The premium charged at the pure rate is called pure premium, which is used to compensate and pay the insured after the insurance accident. Additional insurance premium rate is a secondary part of insurance premium rate, and the premium charged according to additional insurance premium rate is called additional insurance premium. Calculated on the basis of the insurer's business expenses, used for the insurer's business expenses, handling fees and providing part of the insurance profits.

fundamental principle

Different insurance products have different insurance rates, which are determined by insurance companies and then approved by the People's Bank of China. What are the five principles for determining insurance rates? When determining the premium rate, the insurer shall implement the principle of equality of rights and obligations. Specifically, the basic principles for determining the insurance premium rate are sufficiency, fairness, reasonableness, stability and flexibility, and the principle of promoting loss prevention.

suitable

It means that the insurance premium collected is enough to pay the company's insurance premium, reasonable operating expenses, taxes and expected profits. The core of the principle of adequacy is to ensure that the insurer has sufficient solvency.

fair

On the one hand, premium income must be symmetrical with expected payment; On the other hand, the premium borne by the insured should be consistent with the insurance rights it has obtained, and the premium amount should be symmetrical with the insurance type, insurance period, insurance amount, age and gender of the insured. Insured persons with the same risk nature shall bear the same insurance premium rate, while insured persons with different risk nature shall bear different insurance premium rates.

rationality

It means that the insurance premium rate should be as reasonable as possible, and the insurer can't get excess profits because of the high insurance premium rate.

Stable and flexible

Refers to the insurance premium rate should remain stable for a certain period of time to ensure the credibility of the insurance company; At the same time, it should be adjusted with the changes of risk, insurance liability and market demand, which has certain flexibility.

Promote loss prevention

It means that the formulation of insurance premium rate is conducive to promoting the insured to strengthen disaster prevention and loss prevention, and reducing the premium rate for the insured who has done a good job in disaster prevention; Implement preferential rates for the insured with no damage or less loss; The insured who does not do a good job in disaster prevention and loss prevention will be punished by high rates or renewal and increase of fees.