Sino-Singapore Jingwei Client, September 3 According to the news

on the

website of the China Banking and Insurance Regulatory Commission on the 3rd, the

"Guiding Opinions on the Implementation of Comprehensive

Auto Insurance

Reforms" (hereinafter referred to as the "Guiding Opinions") will be implemented on September 19, 2020.

The “Guiding Opinions” clarify that the industry is supported to increase the limit of liability for commercial three liability insurance for demonstration products from 50,000 to 5 million to 100,000 to 10 million; the industry is guided to set the upper limit of the additional expense rate for commercial auto insurance products from 35 % Is lowered to 25%, and the expected loss ratio is increased from 65% to 75%.

According to the person in charge of the relevant department of the China Banking and Insurance Regulatory Commission, after the implementation of the reform, it is expected that in the short term, for consumers, "prices will basically only drop but not rise, the protection will basically only increase but not decrease, and the service will basically only be good but not bad."

By then, consumers will truly feel the six major reform dividends.

Screenshot of China Banking Regulatory Commission website

　　The "Guiding Opinions" take "protecting consumers' rights and interests" as the main objective, and specifically include: establishment of market-oriented clause rate formation mechanism, optimization of guarantee responsibilities, rich product services, reasonable additional costs, sound market system, orderly market competition, and operating efficiency Upgrade, high-quality development of auto insurance, etc.

In the short term, "reducing prices, increasing insurance, and improving quality" will be the interim goals.

　　The "Guiding Opinions" proposed that the China Banking and Insurance Regulatory Commission, in conjunction with the Ministry of Public Security, the Health Commission, and the Ministry of Agriculture and Rural Affairs, will study increasing the liability limit for compulsory traffic insurance, increasing the total liability limit for compulsory traffic insurance from 122,000 yuan to 200,000 yuan, of which the death and disability compensation limit will be increased from 110,000 yuan The compensation limit for medical expenses was increased from 10,000 yuan to 18,000 yuan, and the compensation limit for property losses remained unchanged at 20,000 yuan.

The non-liability compensation limit will be adjusted in the same proportion. The death and disability compensation limit will be increased from 11,000 yuan to 18,000 yuan, the medical expenses compensation limit will be increased from 1,000 yuan to 1,800 yuan, and the property damage compensation limit will remain unchanged at 100 yuan.

　　The "Guiding Opinions" proposes to improve the level of compulsory traffic insurance, and on the basis of increasing the limit of compulsory traffic insurance liability, combined with the comprehensive compensation rate level of compulsory traffic insurance in various regions, a

regional floating factor is introduced into the road traffic accident rate adjustment coefficient, and the upper limit of the floating rate is maintained at 30 The% remains unchanged, and the downward float is expanded from the original lowest -30% to -50%, and the preferential rate for consumers who have not incurred compensation will be increased.

For minor traffic accidents, the parties are encouraged to adopt methods such as "mutual collision and self-compensation", online processing, etc. for rapid processing, and study the factors that do not include the floating factor of the rate increase.

　　The "Guiding Opinions" propose to expand and optimize commercial auto insurance protection services, guide the industry to reasonably delete exemption clauses that are likely to cause claims disputes in practice, reasonably reduce accident liability deductibles, and fail to find third-party deductibles.

Increase the limit of liability for commercial auto insurance, and

support the industry to

increase the limit of liability for

commercial three liability insurance for demonstration products from 50,000 to 5 million to 100,000 to 10 million.

Support the industry to formulate model clauses for new energy vehicle insurance, accident insurance for drivers and passengers, and motor vehicle extended warranty insurance, and explore the development of innovative products such as vehicle mileage insurance (UBI) in new energy vehicles and qualified traditional vehicles.

　　The "Guiding Opinions" pointed out that a reasonable reduction in the surcharge rate will guide the industry to lower the upper limit of the surcharge rate for commercial auto insurance products from 35% to 25%, and increase the expected loss ratio from 65% to 75%.

Promptly support property and casualty insurance companies to report for approval and filing of commercial auto insurance products from online sales and e-commerce channels where the upper limit of the additional expense rate is less than 25%.

　　The "Guiding Opinions" require comprehensively strengthening and improving auto insurance supervision, perfecting the auto insurance reserve supervision system, improving the standard for inadequate reserve reserve, timely and accurately reflecting the operating profit and loss, and forcing property insurance companies to operate rationally and prevent irrational competition.

It is necessary to strengthen the monitoring of reserve adequacy indicators and promptly intervene in abnormal business behaviors.

It is necessary to seriously investigate and punish behaviors such as failing to raise the liability reserve in accordance with the regulations and adjusting the liability reserve in violation of regulations to manipulate financial business data.

　　The "Guiding Opinions" require that insurance institutions and intermediary agencies in the auto insurance field be established and improved systems for co-checking and dealing with intermediaries, and severely cracking down on fictitious intermediary services such as collecting fees, false invoices, and bundling sales.

Promote insurance institutions and intermediary institutions to improve the docking of information systems, standardize the settlement and payment of handling fees, and prohibit sales personnel from making advance payments.

Intermediaries are prohibited from conducting off-site auto insurance business in violation of regulations.

　　The "Guiding Opinions" encourage and protect fair competition and protect the legitimate rights and interests of auto insurance consumers and operators.

It is prohibited to conduct bribery, false propaganda, misleading consumers, fabricating misleading information, etc. to disrupt the order of the auto insurance market in order to obtain trading opportunities or competitive advantages.

The abuse of market dominance by vehicle sales channels, network information platforms, etc., undermining fair competition and damaging the rights and interests of auto insurance consumers shall be seriously investigated and dealt with in accordance with the law in conjunction with relevant departments.

——What impact will the implementation of the "Guiding Opinions" have on consumers?

　　According to the person in charge of the relevant department of the China Banking and Insurance Regulatory Commission, the "Guiding Opinions" will be formally implemented on September 19, 2020. It is expected that after the implementation of the reform, there will be "three basics" for consumers in the short term, that is, "the price will basically only drop. If there is no increase, the protection will basically only increase and not decrease, and the service will basically only be good but not bad."

By then, consumers will truly feel the following reform dividends.

First, the limit of liability for compulsory traffic insurance has been substantially increased.

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, the medical expenses compensation limit has been increased from 10,000 yuan to 18,000 yuan, and the property damage compensation limit has been maintained. The limit of non-liability compensation will be adjusted according to the same ratio. The limit of compensation for death and disability will be increased from 11,000 to 18,000, the limit of compensation for medical expenses will be increased from 1,000 to 1,800, and the limit of compensation for property damage will remain 100. Yuan unchanged.

Second, commercial auto insurance liability is more comprehensive.

The main insurance liability for car damage insurance of the new motor vehicle demonstration product has increased the insurance liability for motor vehicle theft, earthquake and secondary disasters, broken glass alone, spontaneous combustion, and engine wading. The accident liability deductible rate has been deleted. It was unable to find third-party deductibles and other deductible agreements, and deleted the exemption clauses that would easily cause claims disputes in practice to provide consumers with more comprehensive auto insurance protection services.

Third, commercial auto insurance products are more abundant.

Increased the accident insurance products for drivers and passengers, including special terms for value-added auto insurance services including inspection, road rescue, driving service, safety inspection, etc., to provide consumers with more standardized and rich auto insurance products and services.

Fourth, the price of commercial auto insurance is more scientific and reasonable.

The insurance industry recalculated the pure risk premiums of the commercial auto insurance industry based on actual market risks. At the same time, the upper limit of the additional expense rate set for commercial auto insurance products was lowered from 35% to 25%, and the expected loss ratio was increased from 65% to 75%. Product rates and risk levels are more matched.

Fifth, the level of marketization of auto insurance products is higher.

Gradually liberalize the floating range of the independent pricing coefficient. The first step is to determine the range of the independent pricing coefficient as [0.65-1.35], and the second step is to fully liberalize the range of the independent pricing coefficient in a timely manner.

Sixth, the no-indemnity preferential treatment coefficient was further optimized.

After the implementation of the reform, the commercial auto insurance no-compensation preferential treatment coefficient will take into account the scope of compensation records to expand from the previous year to the previous three years, and the rate of increase for accidental compensation consumers will be reduced.

(Zhongxin Jingwei APP)