Research on Risk Classification Based on AHP in Automobile Insurance

Risk management plays an important role in automobile insurance. Risk classification is the first step in risk management. In order to classify the risk levels of the insured, we provide Analytic hierarchy process(AHP) to identify the risks. Firstly risk factors of automobile accidents are identified according to the theories of accident causation. Then AHP is used to calculate the weighs of risk factors. The results show that five factors are the most important in traffic accidents. So we establish a risk survey table to classify the insured's risk level based on the five factors. By using risk survey table to classify the insureds' risk levels, insurance companies can take targeted measures to reduce the accident rate.