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Research on Optimization of Auto Insurance Pricing Strategy Based on Game Theory
- 1 Jiangxi University of Technology High School, Nanchang, China
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Abstract
This study uses the game theory framework to deeply explore the interaction of all parties in auto insurance product pricing, aiming to reveal its complex game relationship and propose effective optimization strategies. Researchers have found that competition and information asymmetry among insurance companies have a significant impact on pricing, but there is still a research gap in the formation mechanism and long-term effect evaluation behind it. Therefore, this study uses the game theory framework, including models such as the prisoner's dilemma, coordination game and signaling game, to deeply explore the interaction of all parties in auto insurance product pricing, aiming to reveal its complex game relationship and propose effective optimization strategies. The results show that through indirect cooperation (such as setting industry standards and sharing non-sensitive data), insurance companies can avoid vicious price wars and improve market transparency; standardized services and simplified terms simplify consumer decisions and enhance market trust; introducing third-party verification and adjusting premiums based on driving records ensure that pricing more accurately reflects the level of risk. The research conclusion points out that this study provides valuable theoretical and practical guidance for game strategies in auto insurance pricing, but there are still limitations in data acquisition, model assumptions, regional differences and long-term effect evaluation. Further exploration and improvement are needed in the future to meet complex market challenges.
Keywords
Auto insurance pricing, game theory, model assumptions, information asymmetry
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Cite this article
Fan,Z. (2025). Research on Optimization of Auto Insurance Pricing Strategy Based on Game Theory. Advances in Economics, Management and Political Sciences,167,63-72.
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