自2011年以来，随着个人购买越来越多的家庭轿车，汽车保险业务迅速增长

Since 2011, as individuals purchase more and more family cars, the auto insurance business has grown rapidly. However, due to narrow roads, novices and more, car traffic accidents have increased a lot. People with auto insurance, because of insurance, drive like a tank. The car burns out and the insurance company must fix it. More people often drunk and drive and can't keep up; others drive inattentively and even doze off. Therefore, auto accidents often occur, and insurance companies cannot get enough insurance to pay for the maintenance costs of auto repair companies. Insurance companies have high premiums and low risk rates. If you further increase the price of insurance, you will not buy insurance at all. The root of this adverse selection effect lies in the incomplete information of insurance companies. Although the company also knows that some of its customers are definitely less risky than others, it cannot know for sure who is less risky. In other words, insurance companies know that there must be differences between individuals, and should strive to divide them into better and worse risk categories and charge different premiums. But it cannot, because it does not know who is at high risk and who is at low risk. Those who actively buy insurance are often at risk because they are prone to accidents, and they are often eager to buy insurance so that insurance companies can pay for them after they have taken out insurance. If insurance prices rise, those who are less likely to get into trouble are more likely to hesitate and shut them out in the first place. This is a typical adverse selection. Higher insurance prices lead to the withdrawal of people with lower accident propensity, and the increase in the proportion of high-risk customers directly affects the increase in insurance expenditures.

Since 2011, auto insurance has grown rapidly as individuals buy more and more family cars. However, due to narrow roads, nods and more, car accidents have increased a lot. People with car insurance, because of insurance, drive like tanks, the car burned out, the insurance company had to fix it. More people often drink and drive, can't keep up; Others don't concentrate or even doze off when they drive. As a result, car accidents are frequent and insurance companies are not getting enough insurance to cover the repair costs of auto repair companies. Insurance companies have high premiums and low risk rates, and you raise the price of insurance even more and don't buy insurance at all. The root of this reverse selection effect is that the information of insurance companies is incomplete. Although the company also knows that some of its customers are certainly less risky than others, it cannot know for sure who is less. In other words, insurers know that there must be differences between individuals and should try to class them into better and worse risk categories and charge different premiums. But it can't because it doesn't know who's at high risk and who's low-risk. Those who actively buy insurance tend to be at risk because they are prone to accidents, and they are often eager to buy insurance so that insurance companies can pay for them after they are insured. If insurance prices rise, those who are less likely to get into trouble are more likely to hesitate and shut them out in the first place. This is a typical reverse choice. Higher insurance prices lead to the withdrawal of people with a lower accident tendency, while the increase in the proportion of high-risk customers directly affects the increase in insurance expenses.

Since 2011, with more and more family cars purchased by individuals, the auto insurance business has grown rapidly. However, due to the narrow roads, novices and more, car accidents have increased a lot. People with car insurance drive like a tank because of the insurance. The car is burnt out. The insurance company must repair it. More people often drink and drive and can't keep up; others don't pay attention and even doze off. Therefore, car accidents often occur, insurance companies can not get enough insurance to pay for the maintenance costs of car repair companies. The premium of insurance company is high, the risk rate is low, you raise the insurance price further, do not buy insurance at all. The root of this adverse selection effect lies in the incomplete information of insurance companies. Although the company also knows that some of its customers are definitely less risky than others, it cannot know exactly who is less risky. In other words, insurance companies know that there must be differences between individuals, and should try to divide them into better and worse risk categories, and charge different premiums. But it can't, because it doesn't know who has high risk and who has low risk. Those who actively buy insurance are often at risk because they are prone to accidents, and they are often eager to buy insurance so that the insurance company can pay for them after they have taken out the insurance. If insurance prices go up, those who are less likely to get into trouble are more likely to hesitate and shut them out in the first place. This is a typical adverse selection. Higher insurance prices lead to the withdrawal of people with lower accident tendency, and the increase of the proportion of high-risk customers directly affects the increase of insurance expenditure.