Countdown to the marketization of auto insurance rates by the end of September or the detailed rules

The market-oriented reform of auto insurance rates, which are of great interest, will be substantively promoted this year.

The newspaper was informed yesterday exclusively from related channels that the China Insurance Association has conducted a survey on the market-oriented reform of commercial auto insurance product rates, and plans to implement the relevant rules by the end of September and begin implementation in January 2012.

Nearly 10 major property and casualty insurance companies, including PICC, Ping An and Taibao, participated in the discussion of the reform. Informed sources said that from the results of the latest discussions, the general idea of ​​the reform is to combine the current ABC three sets of commercial auto insurance products on the market, develop an industry reference clause and pure risk premiums, and the rates are based on the comprehensiveness of various insurance companies. Cost rate (rate ratio + expense rate). However, companies that meet the relevant conditions can still independently develop terms and rates.

Insurers with separate development rights must meet the following conditions: An insurance company whose comprehensive cost rate is lower than the industry average at the end of last year (the lower the comprehensive cost rate indicates that the insurance company's profitability is stronger), can be appropriately increased on the basis of industry reference terms. Insurance liability, but not to reduce insurance liability; recently achieved profitability for three consecutive fiscal years, and the most recent four-quarter solvency adequacy ratio was higher than 150%, and insurance companies that had over 1 million vehicles underwritten by commercial auto insurance over the past years Independently develop terms and rates.

On this basis, the reform will also refine the more consumer-friendly areas. For example, it will remove some of the original provisions that are unfavorable to owners, and increase the scope of insurance coverage.

For insurance companies, the impact of the reforms varies. Large companies with insurance companies based in the city above will obviously benefit, and small and medium-sized companies will face challenges. This is mainly due to the marketization of rates linked to the company's overall cost rate. In general, large companies are easily controlled at a certain level because of economies of scale and advanced management. However, small companies, especially new companies, have a certain degree of difficulty in controlling the overall cost rate.

Industry insiders believe that marketization of rates will have a profound impact on the auto insurance business. On the one hand, through the means of marketization, the existing auto insurance prices are more reasonable, and at the same time, the insurance company's product innovation capabilities are enhanced to meet the diverse needs of customers. On the Other hand, it imposes higher requirements on the operating capabilities of insurance companies. Only by continuously improving the level of operations and management, and reducing costs, can we maintain our competitive advantage in the market.