Exploring the Pricing Strategy of Insurance in China Based on the TOPSIS Method

This paper is based on the panel data of extreme weather in China from 2000 to 2023. Firstly, the TOPSIS method is adopted to determine the weights of various indicators affecting the underwriting of insurance companies and establish a risk assessment system. Secondly, the break-even method is used to formulate the premium pricing strategy, and sensitivity analysis is conducted to test the sensitivity of each indicator. Further analysis is carried out to determine when and where the insurance company's underwriting risk is the lowest and the return is the highest. Finally, from the perspective of developers, the model is optimized. Based on the exploration of the influencing factors of building disaster resistance, the disaster resistance coefficient of disaster-resistant buildings is considered to establish a community disaster resistance capacity system model. Developers can determine whether to develop based on the local disaster resistance capacity indicators and the disaster resistance coefficient of disaster-resistant buildings.