After the comprehensive reform of auto insurance, the cost of insurance has dropped and the protection has become more comprehensive
Insurance premiums dropped by nearly 30%, car owners save money and feel at ease (Financial Eyes)
Our reporter Qu Xinming
Motor vehicle insurance is the largest business in the field of property insurance in my country, and it is related to the vital interests of hundreds of millions of car owners.
On September 19, 2020, the comprehensive auto insurance reform was formally implemented, involving various aspects such as traffic compulsory insurance reform and commercial auto insurance reform.
After the reform, what changes have been made in auto insurance protection and pricing?
How to make better use of the risk management and service functions of auto insurance?
How to further regulate the auto insurance market order?
The reporter conducted an investigation and interview.
The liability limit of compulsory traffic insurance has been increased, and commercial auto insurance coverage has become more comprehensive
Before the Spring Festival, Bloomberg, a resident of Luqiao District, Taizhou City, Zhejiang Province encountered an upset.
One morning, when he was about to drive to work, he found that the front windshield of the car parked in the yard had many cracks, and the maintenance cost would be a lot of money.
Although he insured the main insurance of vehicle loss insurance, he did not insure the separate glass breakage insurance as an additional insurance. According to past experience, this money may be paid out of his own pocket.
Bloomberg immediately consulted the insurance company, but got an unexpected answer.
The staff told him that his vehicle was renewed on December 31, 2020. According to the regulations after the comprehensive reform of auto insurance on September 19 of that year, the new main insurance for vehicle damage insurance added separate broken glass and full motor vehicle insurance. Car theft, engine wading and other insurance liabilities, so he can enjoy related claims services by insuring the main insurance for car damage insurance.
"The insurance company covered 11,500 yuan of glass replacement cost, which helped me a lot." Bloomberg said that in the future, you only need to purchase the main insurance for car damage insurance to enjoy more comprehensive protection, eliminating the need for special purchase additional The troubles and expenditures of insurance products made him very satisfied.
Not only that, after this auto insurance reform, commercial auto insurance products have expanded their insurance liability while also canceling deductible agreements such as accident liability deductibles and the inability to find third-party deductibles, providing consumers with more comprehensive and comprehensive protection services .
Like Bloomberg, many car owners have given thumbs up to this comprehensive reform of auto insurance.
The reporter learned that after the reform, guarantees have only increased, and products and services have become more abundant, bringing greater benefits to consumers.
While promoting a more comprehensive commercial auto insurance liability, this reform adds accident insurance products for drivers and passengers, and at the same time adds value-added auto insurance services such as inspection, road rescue, driving services, and safety inspections, making the previous auto insurance products homogeneous. The situation of chemical competition has improved.
In addition, according to the actual situation of economic and social development, with the support of regulatory authorities, the insurance industry has increased the commercial third-party insurance liability limit for demonstration products from 50,000 to 5 million to 100,000 to 10 million to better protect the third party insurance. Tripartite rights.
"Increasing the limit of liability for commercial third-party insurance is conducive to more fully satisfying consumers' risk protection needs, and better playing the role of economic compensation and resolving conflicts and disputes." said Zheng Wei, director of the Department of Risk Management and Insurance at the School of Economics, Peking University.
According to data released by the China Banking and Insurance Regulatory Commission a few days ago, after the comprehensive reform of auto insurance, the average liability limit for third-party insurance was raised from 900,000 yuan to 1.25 million, and the commercial auto insurance coverage rate rose from 83.8% to 89.2%.
In addition to commercial auto insurance, the mandatory liability insurance for traffic accidents used to protect the rights and interests of road traffic accident victims has also been fully optimized in this reform.
In order to make better use of the traffic compulsory insurance protection function, the regulatory authority has increased the total liability limit of the compulsory traffic insurance 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.
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, and the medical expenses compensation limit will be increased from 1,000 yuan to 1,800 yuan.
"The liability limit for compulsory traffic insurance has been significantly increased, which can provide more solid risk protection for the majority of car owners." said Guo Jinlong, director of the Insurance and Economic Development Research Center of the Chinese Academy of Social Sciences.
The level of marketization of auto insurance products has been improved, and the adjustment of rates has better played the role of "rewarding the good and punishing the bad"
"Not only is there more protection, but premiums have also fallen." This is the true feeling of many car owners after the comprehensive reform of auto insurance.
Not long ago, when Mr. Lu, a citizen of Hangzhou, Zhejiang, renewed the insurance for his car, he was pleasantly surprised to find that although the insurance liability and the insured amount have been increased, the insurance premium has decreased a lot.
"The money saved is enough to add several tanks of gas, and the premium discounts are tangible." Mr. Lu calculated an account for the reporter. Last year there was no traffic accident in his vehicle, and the 30% discount rate for compulsory insurance premiums remains unchanged this year. , Still pay 665 yuan.
In terms of commercial auto insurance, a total of 3,034.69 yuan was paid this year, about 1,600 yuan less than the previous year.
The staff of the insurance company also told Mr. Lu that according to the reformed regulations, if the driving record continues to be good, commercial auto insurance premiums are expected to fall further next year.
Some consumers also reported that they discovered that the premiums had increased when they renewed their auto insurance recently.
According to analysis by industry insiders, this may be due to the fact that the vehicles were in danger in the previous year and have already received insurance claims, which led to the rise in the rate and the increase in insurance premiums.
Guo Jinlong said that this reform has effectively raised the level of marketization of auto insurance products, and the adjustment of rates will better play the role of "rewarding the good and penalizing the bad", which is conducive to promoting car owners to further enhance traffic safety awareness, improve driving habits, and reduce the incidence of accidents.
"The risk prevention and social management functions of auto insurance will be better utilized, which is very important for both car owners and pedestrians."
In terms of compulsory traffic insurance premium rates, the reform has formulated 5 sets of differentiated compulsory traffic insurance premium rate adjustment plans based on the comprehensive compensation rate levels of compulsory traffic insurance in various regions, further optimizing the floating coefficient of road traffic accident rates.
In addition, for minor traffic accidents, the relevant departments encourage the parties to adopt "mutual collision and self-compensation", online processing and other methods for rapid processing, and study plans that do not include the floating factor of the rate increase.
"In the past, the basic rates of compulsory traffic insurance were unified across the country, but there are big differences in the compensation rate of compulsory traffic insurance in different regions. This reform reflects the differentiation of regional rates, which is conducive to better protecting the rights and interests of car owners with good driving habits." China Social Science Said Wang Xiangnan, deputy director of the Institute of Insurance and Economic Development Research Center.
According to data released by the China Banking and Insurance Regulatory Commission, after the comprehensive reform of auto insurance until November 8, 2020, the national average vehicle insurance cost has dropped from 3,700 yuan to 2,700 yuan, an average drop of 27%, and 89.9% of the country’s consumer auto insurance premiums have dropped. The proportion of consumers with a decline of more than 30% reached 67.3%.
Further reduce disorderly competition and standardize the auto insurance market order
In recent years, excessive competition in auto insurance marketing has led to the emergence of some infringements on consumers' rights and interests. This reform has prescribed the right medicine to try to solve the outstanding problems that consumers have strongly reflected, and promote the standardized and healthy development of the auto insurance market.
Ms. Sun, a Beijing citizen, has always gone directly to insurance companies to insure car insurance, believing that this reduces the number of intermediate links and the price will be cheaper.
An accidental experience shocked her. The car insurance prices sold by 4S stores were actually lower than those of insurance companies.
"Will the middlemen who want to'make the difference" make money at a loss?' Ms. Sun was puzzled.
The reporter learned that in the auto insurance market, it is not accidental that the sales price of intermediary channels is lower than the direct-operated price of insurance companies, and intermediaries can often make money from it.
Industry insiders told reporters that among all parties selling auto insurance products, subject to relevant regulations, direct sales channels of insurance companies do not allow substantial price cuts.
Under such circumstances, some insurance companies strengthen their marketing by offering high fees to intermediary channels in order to expand their business volume. Intermediaries who have already earned benefits from insurance companies will naturally be able to sell auto insurance products at lower prices.
"The wool comes from the sheep. Under this marketing model, the high marketing costs of insurance companies will eventually be paid by consumers in various forms." Guo Jinlong said.
In response to these phenomena, the auto insurance reform reasonably lowered the surcharge rate for auto insurance marketing, and guided the industry to lower the upper limit of the commercial auto insurance surcharge rate from 35% to 25%.
Experts believe that this is conducive to reducing the excessively high cost levels in some sales areas, better freeing up the space for price reductions of auto insurance products, and at the same time prompting insurance companies to pay more attention to insurance product innovation and win market recognition with product quality.
As a result, disorderly competition and other phenomena will be further reduced, and the auto insurance market will be more standardized and healthy.
In the past, some small and medium property insurance companies paid high marketing expenses to participate in market competition.
The comprehensive reform of auto insurance encourages small and medium-sized property insurance companies to give priority to the development of differentiated, specialized, and characteristic commercial auto insurance products, and to give priority to the development of commercial auto insurance products through online sales and e-commerce channels.
Experts believe that this will help guide small and medium property insurance companies to transfer marketing costs to product development and provide personalized services to consumers with different needs.
This is also conducive to creating a more complete and multi-level auto insurance market system.
"From the perspective of insurance channels, this reform standardizes the operation of intermediary channels and encourages the development of online channels to make it easier and faster for consumers to purchase auto insurance, which is conducive to enhancing consumers' sense of acquisition and recognition." Ping An Property of China Sun Jianping, Chairman and CEO of Insurance Co., Ltd. said.
Nowadays, when the majority of car owners choose insurance companies, the requirements for the service capabilities of insurance companies are increasing. Disaster warning, accident rescue, and claim efficiency are all important considerations.
In this regard, the reform proposes to support the insurance industry to strengthen the research and application of new technologies, using biotechnology, image recognition, artificial intelligence, big data and other technological means to improve the informatization and digitalization of auto insurance products, guarantees, and services.
At the same time, it actively promotes the electronic insurance policy system to provide consumers with more convenient auto insurance underwriting and claim settlement services.
Guo Jinlong believes that the development and application of these new technologies will not only help improve the level of auto insurance services, but also effectively reduce the operating costs of insurance companies and improve operating efficiency.
"From historical experience, the continuous application of new technologies has a huge impact on the development of the insurance industry. The comprehensive reform plan for auto insurance reflects the development trend of the industry and market requirements. Insurance companies should seize the opportunity to strengthen R&D and application of technology to make auto insurance services more technologically advanced. character'."