Heavy new regulations! Implemented on September 19, it concerns the interests of 260 million car owners

　　Chinanews client, Beijing, September 4 (Zhang Xu) After soliciting opinions, the auto insurance reform involving 260 million car owners has finally landed.

　　On September 3, the official website of the China Banking Regulatory Commission issued the "Guiding Opinions on the Implementation of Comprehensive Auto Insurance Reform" (hereinafter referred to as the "Guiding Opinions"), which will be formally implemented on September 19, 2020, leaving only a transition period of less than 20 days .

Screenshot of the official website of China Banking and Insurance Regulatory Commission.

　　Motor vehicle insurance has long been the largest business in the property and casualty insurance industry and has attracted a lot of attention from the society.

As of 2019, my country's auto insurance underwriting motor vehicles reached 260 million, and the premium income was 818.9 billion yuan, accounting for 63% of property insurance premiums.

　　my country'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 operation, disorderly competition, and data distortion are more prominent.

　　What are the highlights of the comprehensive reform of auto insurance?

Will the service be better?

Will the price rise?

In this regard, the person in charge of the relevant department of the China Banking and Insurance Regulatory Commission said that it is expected that the "three basics" can be achieved for consumers in the short term, that is, "the price will basically only drop but not rise, the guarantee will basically only increase but not decrease, and the service will basically only be excellent. difference".

Data map: Geely automobile production line.

Photo by Qiu Lingfeng

The total liability limit of compulsory traffic insurance increased to 200,000 yuan

　　After the reform, the limit of liability for compulsory traffic insurance was substantially increased, from 122,000 yuan to 200,000 yuan.

Among them, the compensation limit for death and disability was increased from 110,000 yuan to 180,000 yuan, the limit for medical expenses compensation was increased from 10,000 yuan to 18,000 yuan, and the property loss compensation limit remained unchanged at 2,000 yuan.

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

　　Zhang Xiang, an automotive analyst at the Talent Exchange Center of the Ministry of Industry and Information Technology, told Chinanews.com: "The traffic compulsory insurance limit has been greatly increased, and the amount of compulsory compensation for traffic accidents will be higher, which will help protect the rights and interests of the injured in the accident."

Theft and rescue are included in the

main insurance of

　　Currently, commercial vehicle insurance has four main insurances, namely motor vehicle loss insurance, motor vehicle third party liability insurance, motor vehicle personnel liability insurance, and motor vehicle theft insurance.

　　Many car owners do not purchase theft insurance separately except when they are bundled with the purchase of the car in the first year.

Because the car owner believes that the insurance premium for theft and rescue is not cheap, and the probability of the whole car theft is extremely low, which is not cost-effective.

　　In the "Guiding Opinions", theft rescue was deleted from the main insurance, and the related liability was added to the motor vehicle loss insurance.

After the terms are revised, consumers do not need to consider whether to purchase theft insurance separately. If the vehicle is stolen, robbed, or robbed, they can also obtain compensation through car damage insurance.

The picture shows the traffic police patrolling and inspecting vehicles.

(Data Map) Photo by Shi Jingjing

No more deductible for earthquake disasters

　　The theft of motor vehicles is included in the main insurance of car damage insurance. The main insurance liability of car damage insurance for the new motor vehicle demonstration products has also increased insurance liability for earthquakes and secondary disasters, broken glass alone, spontaneous combustion, and engine wading.

　　While expanding the guarantee, the exemption clauses that are prone to cause disputes in claims were deleted in practice, such as removing the exemption clauses for "earthquakes and secondary disasters, etc.".

In other words, my country's auto insurance products basically cover major catastrophe risks such as earthquakes, typhoons, and floods.

　　"Vehicles in the seismic zone of our country are more prone to earthquake risks, and for vehicles in non-seismic zones, the demand for separate insurance is insufficient." Aiwen Insurance CEO Pang Bo explained that catastrophe risk insurance has always been relatively shallow in my country's insurance industry. In the field, the inclusion of catastrophe risk into the auto insurance clause this time is an attempt and breakthrough in my country's catastrophe risk protection.

Damaged cars on the streets of Suide.

Tian Jinshe

Support the innovation of auto insurance model, the

　　It is worth mentioning that the "Guiding Opinions" proposed: 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 motor vehicle mileage in new energy vehicles and qualified traditional vehicles Innovative products such as insurance (UBI).

　　What is UBI and where is the innovation?

　　Zhang Xiang told a reporter from Chinanews.com that UBI's Chinese name is "No Indemnity Preferential Treatment Coefficient", which refers to the business model of buying insurance based on car usage.

If the car owner has good driving behavior, fewer violations, and less mileage, the amount of insurance will be less to encourage car owners to drive civilly and reduce traffic accidents.

The UBI business model has become more common in foreign countries and needs to be promoted in China.

　　The relevant person in charge of the China Banking and Insurance Regulatory Commission pointed out that the commercial auto insurance no-compensation preferential treatment coefficient will take into account the expansion of the scope of the compensation record from the previous year to the first three years. The rate of increase for accidental compensation consumers will be reduced, which will also greatly improve consumers' Sense of gain.

　　"In addition to UBI, the regulatory authority will also incorporate the comprehensive compensation rate level of compulsory traffic insurance in various regions, introduce a regional floating factor in the road traffic accident rate adjustment coefficient, and expand the maximum discount rate for car owners who have not paid 30% to 50%. Car owners with good driving habits and safety records will pay compulsory insurance more cheaply."

Data map: Traffic flow in the direction of Shanghai Expressway.

Photo by Zhang Hengwei

The general trend of falling premiums

　　The head of the China Banking and Insurance Regulatory Commission stated, “After the implementation of the reform, the price of commercial auto insurance has become more scientific and reasonable. The upper limit of the additional expense rate for commercial auto insurance products has been lowered from 35% to 25%, and the expected loss ratio has increased from 65% to 75%. Rate and risk level more closely match.”

　　The industry believes that the reform will allow insurance companies to assume more liability for compensation. While benefiting consumers, the overall loss ratio of insurance companies is expected to rise to a certain extent.

This is consistent with the goal of "increasing insurance and lowering fees" in the comprehensive reform of auto insurance.

　　Although the comprehensive reform of auto insurance has not been formally implemented, the head insurance company, which is the auto insurance market, has begun to prepare.

Starting from August 25th, auto insurance billing fees in some regions have been officially reduced. The extent of the reduction depends on the size of the auto insurance business of insurers. The three property insurance giants, PICC P&C, CPIC P&C and Ping An P&C have the largest reduction, and some regions have the lowest ceiling. Has been reduced to 15%.

　　In response to the impact of the comprehensive reform of the current wheel vehicle insurance on the industry, Shao Liduo, vice president of PICC P&C Insurance, said at the semi-annual report performance conference that from the perspective of the entire industry, the average vehicle insurance premium may have a relatively significant drop.

On the whole, the loss ratio and expense ratio will rise and fall, that is, the overall loss ratio will increase and the expense ratio will drop significantly.

(Finish)