Application of share of choice model in insurance industry based on conjoint analysis and mathematical programming: A case study of automobile insurance in China

The automobile insurance is a massive sector of the whole property insurance industry in China. However, there is a big deficit in this huge market. Since the existing pricing models are only based on the cost and risk factors, we propose a share of choice model based on conjoint analysis and mathematical programming that combines consumers' perception and market share. This model provides a new method to optimize the design of automobile insurance products in China.