UBI Rate Determination Method Based on Entropy Weight-Topsis and Clustering

With the development of big data technology and the popularity of Internet of Vehicles applications, China’s auto insurance market is facing a new round of market-oriented reforms. The determination of autonomy for premiums has brought enormous development opportunities and challenges to major insurance companies. The auto insurance rate determination mode and method used have been difficult to meet the requirements of auto insurance pricing. It is worth noting that UBI has become an inevitable trend in the development of auto insurance, and its method of rate determination has also received extensive attention. In this paper, the driver’s driving behavior is comprehensively evaluated by using the entropy-TOPSIS model. According to the evaluation results, the risk interval is determined by clustering technology, and the rate adjustment coefficient of drivers of different levels of risk is further determined, and the rate is finally determined.