According to the actual market risk situation, the comprehensive auto insurance reform has recalculated the pure risk premiums of the commercial auto insurance industry, and lowered the upper limit of the additional expense rate set for commercial auto insurance products from 35% to 25%, and the expected loss ratio increased from 65% to 75% .
What impact will the "Guiding Opinions" have on consumers after implementation?
It is expected that after the implementation of the reform, the "Guiding Opinions" can achieve "three basics" for consumers in the short term, that is, "prices will basically only fall but not rise, guarantees will basically only increase but not decrease, and services 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 proportion. 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. Unable to find the third-party deductible rate and other deductible agreements, delete the exemption clauses that easily lead to claims disputes in practice, and 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 premium of the commercial auto insurance industry based on the actual market risk. At the same time, the upper limit of the additional expense rate set by the commercial auto insurance product was lowered from 35% to 25%, and the expected loss ratio 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 be expanded from the previous year to the first three years, and the rate of increase for accidental compensation consumers will be reduced.
Compulsory traffic insurance liability limit and rate fluctuation coefficient adjustment
According to the "Announcement on Adjusting the Limits of Compulsory Traffic Insurance Liability Limits and Rate Floating Coefficients" issued by the China Banking and Insurance Regulatory Commission, the level of protection for compulsory traffic insurance will be improved.
The content of the new liability limit plan clarified the compensation limit for death and disability of compulsory traffic insurance of 180,000 yuan, the compensation limit for medical expenses of 18,000 yuan, and the compensation limit for property losses of 20,000 yuan.
When the insured is not liable, the compensation limit for death and disability is 18,000 yuan, the compensation limit for medical expenses is 1,800 yuan, and the compensation limit for property losses is 100 yuan.
Compared with the original liability limit, in addition to the property damage compensation limit remains unchanged, the death and disability compensation limit and the medical expenses compensation limit have been greatly increased.
The content of the new rate floating coefficient scheme clarifies that the rate floating coefficient schemes in various regions of the country have been subdivided from the original category 1 to 5 categories. The upper limit of the floating rate remains unchanged at 30%, and the floating rate is expanded from the original minimum of -30% to -50%, increase the rate of preference for consumers who have not paid.
Through the introduction of five types of rate fluctuation coefficients, to a certain extent, the problem of large differences in the compensation rate of compulsory traffic insurance among different regions has been alleviated, and the low-level compulsory traffic insurance compensation rate of some regions has been improved.
Improve the auto insurance actuarial system and establish a rate retrospective and product correction mechanism. At the same time, in order to improve the auto insurance actuarial system, prevent irrational competition, and promote the high-quality development of auto insurance, the China Banking and Insurance Regulatory Commission recently issued the "Exemplary Actuarial Regulations for Commercial Auto Insurance" (hereinafter referred to as "Actuarial Regulations"). Regulations).
The comprehensive reform of auto insurance requires a relatively strict actuarial system as a guarantee when the front-end price is liberalized.
The Actuarial Regulations mainly start from two aspects: one is to establish a rate backtracking and product correction mechanism to solve the irregularities in the company's auto insurance product rate filing and subsequent implementation; the second is to clearly ensure that the assessment criteria for insufficient reserve funds are specified. By requiring the company to reflect its losses in a timely manner in financial statements and solvency indicators, the company is forced to operate rationally.
The Actuarial Regulations are divided into 7 parts: First, the scope of application, which clearly applies to commercial auto insurance products that use industry model clauses.
The second is the composition of premiums, which clarifies the basic principles of premium determination, premium calculation formulas, industry benchmarks used, and standards for additional expense rates.
The third is rate retrospective and product correction. It is stipulated that insurance companies should establish rate retrospective and product correction mechanisms, dynamically monitor and analyze the deviation of the rate actuarial assumptions from the company's actual operating conditions, and adjust the commercial auto insurance rates in a timely manner.
The fourth is the assessment of insufficient premium reserves, which clarified the calculation formula of the premium adequacy test and the assessment criteria for insufficient premium reserves.
The fifth is the responsibility of the chief actuary. The chief actuary is required to periodically evaluate the reasonableness of pricing assumptions. If there is a major deviation between the pricing assumptions and actual operating results or the insurance company has major risks such as insufficient pricing, the chief actuary should promptly report Agency report.
Sixth, regulatory measures. In order to strictly discipline the auto insurance market, it is clear that the regulatory authorities can take regulatory measures such as ordering insurance companies to stop using products.
The seventh is the supplementary regulations, clarifying matters such as the revocation of documents.
The Actuarial Regulations shall be implemented from the date of publication.
In the next step, the China Banking and Insurance Regulatory Commission will guide all banking and insurance regulatory bureaus, property insurance companies and related units to implement the Actuarial Regulations to prevent and resolve auto insurance business risks.
Source: Comprehensive official website of China Banking and Insurance Regulatory Commission, CCTV Finance