Preface: Putting aside the influence of the epidemic factor, car insurance itself has reached a point where it has to change!
Author | Zhang Jie
Source | Auto Service World (ID: asworld168)
On the eve of the Spring Festival in 2020, at a State Council press conference, Huang Hong, vice chairman of the CBIRC, said that the CBIRC is working on the development of a comprehensive reform of auto insurance of the specific program, will be in 2020 at the appropriate time to formally implement the comprehensive reform of auto insurance.
I think this reveals two messages:
Look at the premium data for the first two months of 2020, property insurance companies have realized a cumulative total of 222.645 billion yuan of original insurance premium income, an increase of only 0.62% year-on-year, of which 121.660 billion yuan of premium income from auto insurance, a year-on-year decline of 5.50%. In February, the worst month of the epidemic, auto insurance premium income fell 18.62% year-on-year. As people's lives returned to calm in March, auto insurance premium growth rebounded, but the overall growth rate is still limited.
Putting aside the impact of the epidemic factor, auto insurance itself has reached the point where it has to change!
First, the beginning and end of the commercial vehicle fee change
The new round of commercial vehicle fee change started in 2011 CCTV exposure of car insurance bully terms.
Calculated from the beginning of 2011, so far has lasted almost 10 years, 10 years can be used to gradually (of course, from my heart more hope to say that does not hurt) the word to describe. "In recent years, the reform of auto insurance is only some small reform, the real reform of the fundamental interests of the reform, the reform of the interests of the fence, the deep-water reform has not yet begun," said Mr. Huang Hong, vice chairman of the Board of Directors.
The process of its promotion still retains a lot of administrative color. The regulator not only has to manage the cost, but also the growth rate, the so-called market-oriented reform only stays at the level of adjusting the rate fluctuation factor in the limited area. In this kind of strict regulation, auto insurance is like a tiger father and tiger mother education under the child, coy, no independent ideas, passive implementation of the command action.
This has led to some deep-rooted conflicts and problems have not been cured, according to the BIA Huang Hong, vice chairman of the description of the "high pricing in the market, high fees, sloppy operation, disorderly competition, data distortion problems still exist.
But the commercial vehicle fee reform, the direction is straight to complete marketization!
We see that the original 2020 will be implemented in the comprehensive reform of auto insurance, has abandoned the previous "commercial vehicle fee reform", a new round of deepening the reform, known as the "comprehensive reform of auto insurance", not only to reform the commercial auto insurance, but also reform The new reform is called "comprehensive auto insurance reform", not only to reform the commercial auto insurance, but also to reform the compulsory insurance, from the direction of the reform, to be more thorough, more market-oriented.
Let's look at the compulsory insurance, since the implementation of compulsory insurance in 2006, so far nearly 14 years, the compulsory insurance of the three issues highlighted:
1, the compulsory insurance continued to make a profit.
According to the regulations, compulsory insurance should be no profit or loss, but in recent years it has continued to make a profit, so many small and medium-sized insurance companies appear only out of the compulsory or compulsory + three products.
2. The limits do not meet existing demand.
After the adjustment in 2008, it has been stuck at 120,000, and with the rise in crowd income and prices, it is clear that it has not been able to meet the current needs.
3, the imbalance of traffic insurance is characterized by prominent.
Different models, different attributes, different regions have produced a great imbalance. The compulsory insurance business shows that private cars subsidize commercial vehicles, less economically developed regions subsidize developed regions.
And according to the State Council issued regulations "Motor Vehicle Traffic Accident Liability Compulsory Insurance Regulations", the regulator does not have the power to reform, so more than a decade, the auto insurance reform has been changed only commercial auto insurance, and as an important part of the auto insurance compulsory insurance if you can not thoroughly implement the reform, will directly affect the reform effect.
The reform is like a deep-water zone, from the "commercial vehicle fee reform" to "comprehensive reform of auto insurance" foreshadowed the wind direction of the reform program:
The four key directions of the auto insurance reform
Direction 1: Compulsory Insurance Reform
"Commercial vehicle fee reform" to "comprehensive reform of auto insurance", the biggest suspense is whether the reform of compulsory insurance is officially opened. The original intention of the establishment of compulsory insurance is not to win or lose insurance, the current reality is that there has been a year after year of profits, losses should be, profit is not normal.
I think it should be reformed from these directions:
"Sub-limit": to increase the sub-limit of death and disability and medical expenses.
"Differentiated model rates": differentiate rates for different models and business attributes.
"Differentiated Geographic Factors": Break away from "one size fits all" and introduce geographic factors based on geographic differences.
Direction 2: Commercial Vehicle Fee Reform
Benchmark Rate Level Reduction: Recalculate the benchmark rate level, and mainly reduce the predetermined cost rate and benchmark rate.
Decrease in Expense Rate Level: Based on the fact that there are markets where the expense rate is currently higher than 50%. After the fee reform, the booking fee rate is reduced from 35% to 30%, and the fee rate space is expected to be lower than 15%, and the reporting line will be more stringent!
The industry is responsible for the development of: benchmark pure risk premiums, no-claims preference factor, traffic violation factor.
Direction 3: Treatment of additional insurance and NCD coefficients
The current auto insurance terms and conditions have a large number of additional insurance terms and conditions in addition to the main insurance, which is very complex. This also makes the decision-making process complicated for car owners to buy car insurance, so it is a market demand to merge part of the additional insurance into the main insurance.
The current NCD coefficients penalize vehicle owners for occasional accidents and are not fair enough. In the periodicity and assessment of the length of time to adjust the coefficient, more rationalization.
From the industry's point of view, the decline in premiums, the expansion of liability, will lead to claims continue to go high; from the three commercial vehicle premium reform in the three provinces since the pilot to promote, the industry wailed, the increase in premium income fell, or even negative growth; policy costs rise, is expected to be more obvious this year.
In the auto insurance product access to take the filing system combined with the approval system, to liberalize the independent pricing power of insurance companies. UBI, new energy, extended warranty and other innovative products, the opportunity to come.
Direction 4: Where is the regulatory road
Since the fee reform has been promoted, especially in 2019, all levels of partners in the field of auto insurance are in a state of "extreme division". Regulatory focus is often changing, a time to focus on the cost rate, a time to limit the growth rate, and then turn over the hand and quota ......
Although the efforts continue to strengthen, but is still the way to treat the symptoms but not the root cause. Since the decline in premiums has become a general trend, the incremental change of stock has also become a fact, may as well form a stage of the Convention, we collectively give up a stage of the price war, each set aside a time not to assess the premium KPIs. Rapid reform, from the top to set a complete and consistent regulatory standards, scales and requirements, the local regulatory authorities are mainly responsible for the implementation of the policy. Take six months to turn the market chaos around through reform. Of course, this is to say, white-hot competitive environment and system this can only happen in a dream.
Three, auto insurance comprehensive reform, who will benefit?
Based on the above judgment, I think the insurance market will be the impact of the existing channels:
Gautama moment:
The revolution often occurs in the "forced" time.
Jin Yinan said: The most terrible thing is that a scholar with faith is forced to become a bandit.