What is particularly noteworthy is that after the implementation of the guidance, the price of commercial automobile insurance is more scientific and reasonable. The insurance industry recalculates the pure risk premium of the commercial automobile insurance industry according to the actual market risk situation. At the same time, the upper limit of the additional charge rate of commercial automobile insurance products is reduced from 35% to 25%, and the expected compensation ratio is increased from 65% to 75%. The rate of automobile insurance products is more consistent with the risk level. In the second step, the range of independent pricing will be gradually released from 35.0 to 65.1. After the implementation of the reform, the scope of compensation records will be expanded from the previous year to the first three years, and the rate increase range for accidental compensation consumers will be reduced.
The relevant person in charge of the CBRC stressed that it is expected that after the implementation of the reform, Three Basics can be achieved for consumers in the short term, that is, prices are basically only reduced but not increased, security is basically increased but not reduced, and services are basically only excellent but not poor. According to the recent business situation of new auto insurance disclosed by insurance companies, the premium of vehicle insurance for car owners has generally decreased. On this basis, insurance companies such as China Pacific Insurance Company and Ping An insurance company of China have also optimized vehicle insurance services.
After the introduction of comprehensive reform of vehicle insurance, do car owners feel this change? According to the information learned by the reporter of Securities Daily, after the comprehensive reform of vehicle insurance, the insurance premium of car owners has generally decreased, but some owners have increased instead of decreasing.
Similarly, the reporter learned from Ping An Property insurance that at 0:01 on September 19, Mr. Lu, the owner of Ping An from Shanghai, received a new insurance policy for his car, with a premium of 1944.25 yuan, while that of Mr. Lus car in 2019 was 2352.60 yuan. Last year, Mr. Lus Insurance types included motor vehicle loss insurance, third-party liability insurance, and no deductible insurance (motor vehicle loss insurance). This year, new insurance was added Additional special terms of value-added service for road rescue and inspection on behalf of motor vehicles are added.
Comprehensive reform forces insurance enterprises to improve their service ability
From the data before the comprehensive reform, on September 25, the China Banking and Insurance Regulatory Commission disclosed the industry premium data for the first eight months of 2020. Among them, the premium income of automobile insurance in the first eight months reached 546.296 billion yuan, up 4.76% year on year, accounting for 58.15% of the property insurance market share, and it is still the largest insurance type in the property insurance industry. According to the data, in the first eight months of 2020, the premium income of PICC Property Insurance, Ping An Property Insurance and PICC Property Insurance were 307.6 billion yuan, 192.8 billion yuan and 99.9 billion yuan respectively, with a total income of 600.3 billion yuan, accounting for 63.9% of the property insurance market.
It is noteworthy that with the implementation of comprehensive reform of vehicle insurance, the property insurance industry may be affected by the short-term delay of vehicle insurance, and the growth rate has slowed down. Sun Jianping, chairman and CEO of Ping An Property Insurance, believes that the comprehensive reform of automobile insurance has entered the deep water area, and the industry will certainly have a period of pain. In the short term, the growth rate of automobile insurance premium in the industry may decline, or even negative growth, and the comprehensive cost rate may exceed 100%. However, market-oriented reform is the best choice for Chinas automobile insurance. Only by promoting market-oriented reform can we solve the long-term existence of the automobile insurance market In order to further achieve high-quality development of vehicle insurance.
Gu Yue, chairman of PICC Property Insurance, said at the 2020 capital market opening day on September 24, the intention of the comprehensive reform of automobile insurance is to protect the rights and interests of consumers as the center, on the other hand, it also forces insurance companies to increase the degree of intensification, so as to provide consumers with more and better products and services with lower prices.. As for the impact of the reform on the industry, the management of PICC Property Insurance believes that three core capabilities determine whether the company has the ability to cope with: the first is the ability to directly access customers. According to the current reform ideas, if there is no direct customer capacity, there will be great pressure in the future competition; the second is the intensive ability, and the upper limit of the additional charge rate of commercial vehicle insurance products will be reduced from 35% to 25%. How to obtain these 10 points, at the same time, the insurance company also needs to make profits and comprehensively improve the intensive ability; the third is how to provide customers with the best service The best protection. It is difficult to translate many safeguards into concrete results. To some extent, the competitiveness of insurance companies in the future will be reflected in the level of service ability.
Shi Hui, general manager of property insurance, also said in an interview with Securities Daily that the comprehensive reform of automobile insurance will inevitably have a great impact on the market and the cost structure of insurance companies automobile insurance operation, and test the ability of actuarial pricing, risk control and cost accounting of insurance companies. It has a greater impact on the companies with extensive operation and poor management ability. Although there are pains in the comprehensive reform of automobile insurance, it will eventually promote the operation of insurance companies from sales and product centered to customer-centered. Insurance companies should fully predict the change of cost structure caused by the change of risk and consideration premium, and actively consider the Countermeasures in the aspect of operation and management mode.