u25a0 in some regions and institutions, low prices and high fees have occurred, and local banking and insurance regulatory bureaus have imposed administrative penalties on branches of local insurance companies to stop accepting new business of commercial vehicle insurance for three months.
u25a0 most companies have not clearly proposed the assessment index for the scale of premium reduction for branches in most regions, and many head companies such as PICC Property Insurance, Ping An Property Insurance and Guoshou property insurance have been named.
u25a0 in order to strive for price advantage, some companies have pieced together models with high independent pricing coefficient.
u25a0 some companies use the high service charge of driving insurance to get the expenses to subsidize the vehicle insurance.
Supporting documents are on the way. According to the reporters understanding, the insurance industry association is drafting the value-added service standards for motor vehicle insurance and a plan for improving the assessment work of property insurance companies, pointing directly to the root causes of irregularities and chaos in automobile insurance.
Two symposiums a month
On November 18 and November 24, the CBRC held two automobile insurance symposiums. Ten property insurance companies, insurance industry association, actuary Association, Bank of China Insurance Corporation and 13 relevant persons in charge of the banking and insurance regulatory bureau attended the two symposiums respectively and made relevant reports.
However, at the same time, in some regions and institutions, the old problems in the auto insurance market have been rising, and new problems have begun to emerge, which must be corrected in time.
Old problems rise again
The old problem of vehicle insurance chaos has been criticized for many years and can be classified into six categories.
Underwriting side: due to the low compensation ratio of compulsory traffic insurance in some areas, the market expenses paid and committed by commercial vehicle insurance still have the impulse to exceed the upper limit of the reported service rate, and there is an untrue phenomenon that the data of arbitrage fees and fees are not recorded in time.
Claim settlement: some companies have significantly increased the settled loss rate. In addition to the reasonable factors for the increase of normal value-added service fee and accident rate, there is also the impact of the increase in the price of labor accessories in the process of claim adjustment.
Second, according to a large number of floor price single problem.
Third, the issue of giving other benefits beyond the contract.
With the gradual clarification of backtracking principles and standards, irrational discount competition is restricted, and other benefits beyond the contract are reappeared in different regions of each company.
Fourth, the use of value-added service terms is out of order.
The situation of providing free services directly according to the maximum number of times allowed by the terms and using gimmicks to seize the market has been initially curbed. However, the problems of providing various additional valuable services beyond the scope of the four value-added services in the model terms have been highlighted, and there is a suspicion that the rates of the terms are not strictly enforced and other benefits beyond the contract are given. And the relevant personalized service cost accounting is not standardized, all of which are included in the claim expenses, which is easy to disturb the financial indicators.
Fifth, the problem of cross provincial business flow.
Taking advantage of the differences in rates and handling charges among provinces and cities, intermediary agencies issue orders for some League single businesses or channel businesses across provinces or even violate regulations, thus disrupting the market order and data base.
Sixthly, the overall discount of new cars is still high, which damages the interests of new car policy holders.
The national average self pricing coefficient of new cars is 1.027, 18% higher than that of 0.87 of old cars. Under the condition that the compensation ratio of new and old cars is almost the same, the relatively high price of new cars infringes on the rights and interests of consumers on the one hand, and on the other hand, it is not conducive to maintaining the operation order of the new car market, and high handling charges may still become a problem in the field of new cars.
New problems arise
In addition to the problems mentioned, there are four new problems in the auto insurance market, which have aroused the high attention of the regulatory authorities.
First, some regions and institutions have low prices and high fees.
For example, Henan, Hebei, Guangxi and other regions reflect the above situation is more prominent. Low price and high fee disturbs the market order from two aspects of insufficient pricing and chaotic cost, which is the manifestation of irrational competition and must be corrected in time.
Second, most companies have not clearly put forward the assessment index for the scale of premium reduction in most regions.
Third, in order to strive for price advantage, some companies pieced together the business model with higher independent pricing coefficient.
After the comprehensive reform of vehicle insurance, some companies should not only meet the requirements of the local banking and Insurance Regulatory Bureau on the overall independent pricing coefficient, but also obtain price advantage in the field of household car insurance. Therefore, they deliberately underwrite special vehicles, heavy trucks and taxis with high independent pricing coefficient to balance the overall independent pricing coefficient of the company.
Although the average independent pricing coefficient of some companies meets the requirements, the business structure has changed greatly compared with the original level of the company, the proportion of high-risk business has increased significantly, and the follow-up operation results are not optimistic.
The fourth is to collect the cost through the insurance of driving intention.
Some companies subsidize vehicle insurance through high service charge of driving insurance. On the one hand, the high price of driving insurance infringes on the interests of consumers; on the other hand, the high cost of driving insurance flows into the automobile insurance market, which disturbs the order of automobile insurance market.
Calculate the operating cost account
The person in charge further said that if the company also invested in high fees and high handling charges in this case, it is not ruled out that the comprehensive cost rate may exceed 100%, and there will be underwriting losses for vehicle insurance. Therefore, each company should rationally determine the independent pricing coefficient and handling fee on the basis of calculating the operating cost account. If the vicious competition of low price and high fee is implemented in the market regardless of the cost, the operation risk of vehicle insurance will obviously increase. This is not in line with the original intention of comprehensive reform of vehicle insurance, and it must be resolutely curbed.
Therefore, at the two symposiums, the regulatory authorities put forward clear requirements for the rational operation of insurance companies
First, strengthen the awareness of compliance and prevent the risks of vehicle insurance operation.
All companies should strictly implement the reported rates and handling charges, and it is strictly prohibited to illegally collect fees. Especially for the key areas where low prices and high fees are concerned, the next step will be to strictly deal with them and resolutely curb the signs of irrational competition. Pay close attention to the new signs in the market. All cbcircs should pay close attention to the illegal issues of illegal payment of service charges or giving benefits beyond the contract through the arbitrage fees of driving insurance.
The second is to establish a new concept of development and formulate reasonable assessment indicators.
All companies should establish scientific management assessment and incentive mechanism, take internal control implementation as the primary content of business assessment, abandon the wrong practices such as ignoring internal control compliance and risk control, blindly competing for scale and share, breaking away from the development foundation and market affordability, and assigning unrealistic premium growth tasks to branches, and regard compliance according to law as the basic premise of business development baseline.
The third is to clarify the regulatory rules and conduct differentiated guidance according to local conditions. The regulatory authorities should strengthen the research on the new situations and changes in the market, and the regulatory rules should be adjusted accordingly. For small and medium-sized companies, we should give differentiated regulatory standards according to business structure and business quality. It is necessary to study and issue policies supporting small and medium-sized companies to develop innovative products, including new energy vehicle insurance, mileage insurance, UBI and other innovative products. In addition, for the exclusive products of power grid sales, the regulatory authorities, after research, believe that if only the price is superior to the demonstration products, it will become a channel to obtain low-cost competition means, and the problem of fake power grid sales will appear again, which is not conducive to the smooth and orderly progress of the current reform, so it is not supported temporarily. Editor: Chen Yu source: Shanghai Securities News Editor in charge: Zhong Qiming_ NF5619
The third is to clarify the regulatory rules and conduct differentiated guidance according to local conditions.
The regulatory authorities should strengthen the research on the new situations and changes in the market, and the regulatory rules should be adjusted accordingly. For small and medium-sized companies, we should give differentiated regulatory standards according to business structure and business quality. It is necessary to study and issue policies supporting small and medium-sized companies to develop innovative products, including new energy vehicle insurance, mileage insurance, UBI and other innovative products.
In addition, for the exclusive products of power grid sales, the regulatory authorities, after research, believe that if only the price is superior to the demonstration products, it will become a channel to obtain low-cost competition means, and the problem of fake power grid sales will appear again, which is not conducive to the smooth and orderly progress of the current reform, so it is not supported temporarily.