Auto insurance reform, consumers benefit geometrically (economic focus)
Our reporter Qu Xinming
Motor vehicle insurance is closely related to the lives and vital interests of the people. It has long been the largest business in the property insurance field and has attracted high social attention.
After years of reform and development, my country's auto insurance has achieved positive results.
In 2019, auto insurance covered 260 million motor vehicles, and premium income was 818.9 billion yuan, accounting for 63% of property insurance premiums.
But at the same time, the problems of high pricing, high handling fees, and extensive operation in the auto insurance field have not been fundamentally resolved. The contradiction between the increasing demand for auto insurance protection and the supply of auto insurance still exists.
In order to solve the complex problems in the field of auto insurance, realize the high-quality development of auto insurance, and better protect the rights and interests of consumers, the China Banking and Insurance Regulatory Commission issued the "Guiding Opinions on the Implementation of Comprehensive Auto Insurance Reforms" after extensively soliciting opinions from all parties.
What benefits can this reform bring to consumers?
The reporter conducted an interview.
Expand the scope and quota to better play the risk protection function
The comprehensive reform of auto insurance will be formally implemented on September 19.
The relevant person in charge of the China Banking and Insurance Regulatory Commission said that after the implementation of the reform, it is expected that in the short term, "prices will basically only drop but not rise, the guarantee basically only increase but not decrease, and the service will basically only be good but not bad."
The limit of liability for compulsory traffic insurance has increased significantly-
In this reform, the increase in the limit of liability for compulsory traffic insurance has attracted special attention.
After the reform, the total liability limit of compulsory traffic insurance was increased from 122,000 yuan to 200,000 yuan, of which the death and disability compensation limit was increased from 110,000 yuan to 180,000 yuan, and the medical expenses compensation limit was increased from 10,000 yuan to 18,000 yuan. The limit of compensation for losses remains unchanged at RMB 2,000; the limit for non-liability compensation is adjusted in accordance with the same proportion. The compensation limit for death and disability is increased from RMB 11,000 to RMB 18,000, and the limit for compensation for medical expenses is increased from RMB 1,000 to RMB 1,800. The compensation limit remains unchanged at 100 yuan.
"The increase in the liability limit for compulsory traffic insurance provides more protection for drivers and pedestrians," said Mr. Ma, a car owner in Haidian District, Beijing.
The China Banking and Insurance Regulatory Commission issued an announcement a few days ago, stipulating the switching time and transitional arrangements, clarifying that in the event of a road traffic accident after 0:00 on September 19, 2020, the new and existing compulsory compulsory insurance policies shall be implemented in accordance with the new liability limits.
Commercial auto insurance liability is more comprehensive——
"The year before last, when I was driving on a highway, the window glass was hit and a pit was hit. I contacted the insurance company for car damage insurance claims, but I was told that it was not covered by the insurance." Mr. Ma said.
The similar situation will be improved.
This reform will support the industry to expand the scope of liability for commercial auto insurance, and guide the industry to increase the vehicle damage insurance main insurance clauses of the motor vehicle demonstration products on the basis of the existing insurance liability, and increase motor vehicle theft, separate glass breakage, spontaneous combustion, and engine Insurance liability for wading, excluding deductibles, unable to find a third-party special contract, and supporting the industry to develop additional insurance products such as independent loss insurance for wheels and liability insurance for drugs used outside medical insurance.
The reform also deleted the accident liability deductible rate, the inability to find a third-party deductible rate and other deductible agreements, and deleted the exemption clauses that are likely to cause claims disputes in practice.
"Expanding insurance liability and increasing the amount of protection will provide more comprehensive consumer risk protection, which will also encourage insurance companies to improve auto insurance operating efficiency and service capabilities, and better play the role of insurance in economic compensation and resolving conflicts and disputes." Ping An Property & Casualty Insurance The person in charge said.
"After the reform, consumers will enjoy more comprehensive, complete and standardized auto insurance products and services." said Wang Xiangnan, deputy director of the Insurance and Economic Development Research Center of the Chinese Academy of Social Sciences.
Car insurance rates are generally reduced, and car owners with good driving habits and safety records will benefit more
"Now I pay 665 yuan per year for compulsory insurance, and in the future, insurance premiums are expected to drop by another 190 yuan, which is equivalent to more than half a tank of gas. The benefits of reform are visible and tangible." said a car owner in Inner Mongolia.
The reform will increase the traffic compulsory insurance liability limit and the comprehensive compensation rate level of the compulsory traffic insurance in various regions, and introduce a regional floating factor in the road traffic accident rate adjustment coefficient. The floating rate will be increased from the original minimum 30% to 50%. The rate preference for consumers who have not paid.
The owner of the car in Inner Mongolia settled the account for the reporter: Taking his five-seater car as an example, the compulsory insurance premium for the first year is 950 yuan. After that, if no compensation is incurred, the premium is discounted up to 30%, and the annual payment is 665 yuan. , After the downward float ratio is expanded to a minimum of 50%, it can be discounted to 475 yuan.
In addition, the upper limit of the floating rate of the compulsory traffic insurance remains unchanged. For minor traffic accidents, the study will not include the floating factor of the rate increase.
In terms of commercial auto insurance, the non-compensation preferential treatment coefficient will be 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 previous three years, and the rate of increase for accidental compensation consumers will be reduced.
The level of marketization of auto insurance products has increased, and the floating range of the independent pricing coefficient is gradually liberalized. 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.
"Different regions, different models and car owners have different rates of change, but the overall rate is lower, consumers will benefit from it." Wang Xiangnan said.
Industry insiders pointed out that after the reform, the role of auto insurance rates in "rewarding good and penalizing bad" will be better played, and car owners with good driving habits and safety records will benefit more. This will also help promote the majority of car owners to further regulate their driving behavior.
Strengthen online services to make it easier for consumers to insure and settle claims
In early July, Ms. Wang, who works in Shanghai, reported to the insurance company that insured her auto insurance that the car she had placed in her hometown Shexian, Huangshan City, Anhui Province was severely damaged due to heavy rain. Ms. Wang was in Shanghai and the flooded vehicle was unattended.
After the insurance company received the report, the staff contacted Ms. Wang online through the mobile phone APP, and the compensation payment was completed more than 10 hours later.
Many car owners believe that when choosing a car insurance company, they pay more attention to the service capabilities of the insurance company. Disaster warning, accident rescue, claims efficiency, and value-added services are all important considerations.
The reform clearly proposes to actively promote the electronic insurance policy system, and encourage property insurance companies to provide consumers with more convenient auto insurance underwriting and claim settlement services on the basis of protecting consumers' right to know and choice.
“In the first half of the year, PICC Property & Casualty Insurance strengthened technological empowerment and vigorously promoted online underwriting and online claims for auto insurance. The online conversion rate increased rapidly, reaching approximately 80% and 90% respectively.” The relevant person in charge of PICC Property & Casualty said that in the long run, The service capabilities of insurance companies are becoming more and more important in the field of auto insurance, and reforms will further promote insurance companies to improve their services and claims settlement capabilities, and enhance consumer experience.
The industry believes that to improve the quality and efficiency of auto insurance services, it is very important to improve the level of technology and develop online business.
For consumers, online insurance and claim settlement will bring great convenience.
For insurance companies, strengthening online services can also improve their own operational efficiency, reduce labor costs, and promote sound development of the industry.
Several insurance company leaders said that in order to better serve car owners, the company will increase technological empowerment, and continue to improve intelligent services such as disaster intelligent warning, online insurance guidance, online self-service response, insurance policy self-service inquiry, and online claim settlement for car owners. Provide a more convenient experience of auto insurance underwriting claims.