A Study on the Design of a Performance Bond for After-school Tutoring Institutions' Prepaid Consumption

Against the backdrop of increasing consumer complaints about out-of-school education and training and the difficulty of refunding fees caused by the closure of training institutions, this paper analyses the development of China's education and training industry in the last decade and the risks it is currently facing, and designs an innovative after-school tutoring pre-paid consumption perfomance bond insurance based on 218 questionnaires collected. The product uses a big data platform to connect three different ports of the APP, drawing on the new model of “commercial insurance and e-CNY and platform supervision”. It uses credit rating to determine the cost, a credit level transfer matrix to calculate the probability of risk events and the average cumulative default rate to achieve reasonable pricing over a long period of time, and nearly a dozen calculation formulas to determine the balance of the advance receipts, which provides consumers with more comprehensive and flexible risk protection. At the same time, we have studied the user experience optimisation and marketing strategy of this insurance product, aiming to achieve a virtuous cycle for the insurance company. As an innovative insurance product, the product fills a gap in the market and is highly competitive in terms of future market demand. We hope that insurance can effectively protect the legitimate rights and we expect to provide realistic help for those of us who aspire to education and provide reference for other consumer protection.