Take credit card installment as an example: the monthly handling fee rate is 0.56%, that is, the monthly handling fee rate is 1 1,000 yuan, 1 1,000 yuan is 5.6 yuan, and so on.
When a cardholder uses a credit card to make a large amount of consumption, the bank will pay the cardholder the consumption funds of the goods (or services) purchased by the cardholder in one lump sum, and then let the cardholder repay the money to the bank in installments and pay the handling fee. According to the cardholder's application, the bank deducts the consumption funds and handling fees by stages through the cardholder's credit card account, and the cardholder repays according to the monthly recorded amount.
Empirical method for calculating monthly handling fee rate:
The monthly rate method is to increase or decrease the classified rate according to the past loss records of the insured, but the insurance rate of the current year is not affected by the experience of the current year, but the average loss of the past few years is used to correct the insurance rate of the next year. The theoretical basis of empirical method is that any risk factor that can affect the future must have affected the experience of past policyholders.
The calculation formula of monthly handling fee rate is as follows: M— percentage of insurance rate adjustment, A— actual loss of the insured during the experience period, E— expected loss of the insured when applying a certain classification, C— reliability coefficient, T— trend coefficient (considering the trend of average compensation expenditure and the change of price index).
The advantage of empirical method is that several specific influencing factors have been considered when determining the premium of the insured, while tabular method only gives material factors, excluding non-material factors. Compared with the tabular method, the empirical method can consider all the factors that affect the danger more comprehensively. Empirical methods are mainly used in automobile insurance, public liability insurance and burglary insurance.