China News Service, Beijing, September 3 (Reporter Wang Enbo) As China's property insurance industry's long-term largest business, the auto insurance market is undergoing major reforms.
The China Banking and Insurance Regulatory Commission announced on the 3rd the "Guiding Opinions on the Implementation of the Comprehensive Reform of Auto Insurance" that it will give full play to the decisive role of the market in the allocation of auto insurance resources, better play the role of the government, and minimize the direct intervention of supervision on the microeconomic activities of auto insurance.
According to the person in charge of the relevant department of the China Banking and Insurance Regulatory Commission, China's auto insurance insured 260 million motor vehicles in 2019, with an insurance premium income of 818.9 billion yuan (RMB, the same below), accounting for 63% of property insurance premiums.
China's auto insurance has achieved positive results after years of reform and development, but some long-standing deep-seated contradictions and problems have not been fundamentally resolved. Problems such as high pricing, high handling fees, extensive operations, disorderly competition, and data distortion are more prominent.
The person in charge stated that the primary principle of this reform is "market decision, supervision and guidance."
While minimizing direct intervention, the government will use market-based legalization methods to improve pre- and post-event supervision, strengthen market order, improve the effectiveness of supervision such as reserves, and strengthen the rigid constraints of solvency supervision.
Specifically, this reform will improve the market-oriented formation mechanism of commercial auto insurance clause rates, improve the industry's pure risk premium measurement mechanism, reasonably reduce the additional expense rate, gradually liberalize the floating range of the independent pricing coefficient, optimize the non-indemnity preferential treatment coefficient, and scientifically set Set the upper limit of the handling fee ratio.
At the same time, reform the access and management methods of auto insurance products, change the access method of commercial auto insurance demonstration products from the approval system to the filing system, and support small and medium property insurance companies to give priority to the development of differentiated innovative products.
The person in charge said that for a large number of auto insurance consumers, after the reform was officially implemented on September 19, it will be possible in the short term to "basically only drop but not rise, the guarantee basically only increases but not decrease, and the service basically Only good but not bad".
It is worth noting that the limit of liability for compulsory motor vehicle accident liability insurance (compulsory traffic insurance) will be greatly increased after the reform.
The total liability limit has been increased from 122,000 yuan to 200,000 yuan, of which the death and disability compensation limit has been increased from 110,000 yuan to 180,000 yuan, and the medical expenses compensation limit has been increased from 10,000 yuan to 18,000 yuan; Adjust the same ratio.
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