"Commercial auto insurance reform will establish industry model clauses based, innovative insurance company commercial auto insurance terms, supplemented by the terms of a management system, business model clauses, it is now the introduction of the integrated model, the next step is to develop a comprehensive industry and basic provisions, Someday in the industry three aspects of the terms of parallel model clauses. "May 13, the CIRC Property Insurance Regulatory Department Director Liu Feng appeared in 2015 China Development Forum, the case described the car insurance auto insurance reform progress.
"Competitive differentiation, market segmentation, is our future determine the pattern of commercial insurance," Liu Feng said in an interview with the Economic Observer reported, we judge the reform launched later this trend will be more obvious, of course, can not suddenly reach such a state, we need a process.
The launch of the reform is at hand, from the commercial vehicles have changed the pilot officially launched just 13 days. "In the pilot areas, before June 1 to switch the old and new provisions, cease all use of the terms of the old, completely switched to the new terms, rates up, the insurance company must be completed before the new terms in June 1, rates approval, "Liu Feng said that the insurance companies are actively preparing for, it should not be a problem.
More a matter of concern to the market, after obtaining autonomy in pricing, the insurance company reported terms, rates will be what kind of change? The final show in front of consumers, how will the policy prices change?
Smooth handover
"June 1 if no filing is completed, then the insurance company after June 1 in the pilot areas, there is no product to sell." This is the big thing, so now piloted vehicles have changed from the less than two weeks, the insurance company plans to get what? "In fact, from the second half of last year, the brewing industry in this matter, many companies late last year began to study how to use, manage independent pricing section, including independent underwriting factor independent channel coefficients, etc.," said Liu Feng, also an information system transformation, and the China Insurance letter docking platform, starting as early as the company intranet debugging have been completed.
Of course, individual action too late, slow response of the insurance companies are now really tight. Liu Feng also expressed understanding, "does have a number of small companies set up a relatively short time, technically lacking, basically no data, so the company can find a third party to do the model, the historical data with reference to the industry, and then slowly build up their day data and capacity. "" We have submitted over, "a small insurance company marketing director told the Economic Observer reported, actuarial, product and other departments have worked overtime for more than 20 days, the small company market bias of historical data and more, It requires actuarial adjustments on more.
It is a small insurance company marketing director introduction, the company's new products in their responsibilities have been revised according to the China Insurance Association for the new version of the model clauses, there are some changes in emphasis on pricing. "The main factor is the independent underwriting, independent channel coefficients, as well as pricing models, the company will be given to adjust according to their own situation."
So, adjustments of insurance companies do? "Insurance companies are very large internal differences, especially on pricing models, since the maintenance costs, compensation costs, local driving habits, local income levels, vehicle ownership and so the difference in various regions of itself is not the same pricing models . " Of the small insurance company marketing director Road, for example, such as Xinjiang and Shanghai is not the same pricing models, if a company's customers in Xinjiang more data on multiple databases in Xinjiang, then the overall pricing on some of the actual situation in Xinjiang bias.
It is worth noting that each of the company's business in the local distribution uneven, relatively large distribution of the company's business closer to the market situation, and the small company sector distribution deviates greatly, resulting in vastly different historical database in order to pricing is also It will be very different.
"So, companies, especially small companies, according to the actual situation if historical data adjustments, various pricing will certainly be a huge change, after changes in the market will certainly be affected, because the market can not fully fit, with the market is derailed a. "small insurance company said director of marketing, said, so most companies have 10 points if the data changes in circumstances, the actual adjustment of only 2 minutes, the most rational is slowly advancing, and ultimately achieve the purpose of the vehicles have changed, and change the status of the insurance company losses.
This view has been affirmed Liu Feng. "Infancy to slowly switch from the old state to a new state, the ability, the owner diet industry requires a process. We have a standard, it is to ensure stable market, switching is a smooth handover, the insurance company It will be done in accordance with this. "
In addition, concern for innovative provisions, the expert jury Insurance Association has been built, and the innovative provisions of insurance companies to submit to this, we have recognized and reported to the China Insurance Regulatory Commission review, "There is no company report CIRC . "Liu Feng expressed.
Premium trim
Regardless of how the insurance company's internal adjustment, the final presentation to the consumer is the premium change, which is the consumers most concerned about. So, the premium is expected to occur in pilot areas what changes? "After the adjustment, the premium should be sinking trend," more for the insurance industry believes that, "but the intensity is not great premium sink, and there will be differences in premium six places but this pilot will not be very Great. " According to the company database in different regions, there are some models coefficient to adjust, but will use an autonomous and independent channels underwriting factor correction coefficients, and so the gap is not particularly large, should all mildness treatment.
Figuratively, the original 1000 yuan policy, the insurance company may also presented 100 gift; and now the same pricing policy to sink to 900 yuan, the insurance company may only dozens of pieces presented gifts. "Thus, the insurance company's costs is to reduce the number and cost will be lower," a small insurance company marketing director said this.
In fact, this is also expected to integrate into the insurance company in this pricing. "Insurance companies factor as this reference is not only historical pricing data, as well as expectations for future expense ratio," a medium-sized insurance company vice president had told the Economic Observer reported that the future of the company's expense ratio will decline, including management, channel, payment and other aspects.
In addition to the rates side there is a degree of autonomy, the pilot areas also expanded at a discount floating range. "After June 1, the pilot areas, there is no insurance company to 50% off limits," Liu Feng said so on the Chinese auto insurance forum.
However, if you do not think the 7% limit, the insurance companies will be crazy prices, then you are wrong. "Now the insurance company convergence rational, and not like a dozen years ago to fight the price war", a small insurance company marketing director, said the above, we have shareholders with profitability requirements, sell a single lost a single business nobody do. Of course, more than thirty regions of the country, it is inevitable there are occurrences of this vicious competition, but this trend can not be spread throughout the country, will eventually return to reason.
In fact, auto insurance rates based on the reform program, the number of insurance companies give discounts, is to look at the risk of driving behavior and driving the owners. According to CEO handsome car Bao Yong, "there are 13 Chinese and foreign insurance companies to cooperate with us, including the Pacific, the sun, the CAS, the earth, etc., the insurance company with a history of payment data, we use the owner driving data, together with the two sides to establish a Risk-based driving risk pool, you can find those driving behavior, low driving risk owners, their risk and pure driving risk premiums do match. "" From our match results, good driving behavior and history paid the owners Match owners low is very high, the owner of the dangerous condition of good driving behavior rates are lower than the industry average of 20%. "Shuai Yong said, these owners will be divided into five grades AE, and their driving risk by 1- scoring 10 points, the insurance company and then according to their company's business situation and market strategies, to the owners of these various different premium discount, the owner can choose between these insurance companies, owners of the best that the owners take Class A to a maximum discount of up to 6 fold more.
Of course, the insurance company can not indefinitely be discounted. "Rates of insurance companies to develop can be recognized by the market, and there is no pricing risk and solvency risk," Liu Feng said, it is that we can, but if there are pricing risk or solvency risk, or will be involved in regulation of the CIRC.
Liu Feng said vehicles have changed to improve the ability of insurance companies have requirements, the cost of management and control are demanding, so to be competitive. Future, millions of soldiers have made auto insurance situation will certainly change, competitive differentiation occurs, we will be judged segments, the United States 7-8 thousand companies, and not all insurance companies are doing auto insurance reform launched This trend will be more obvious in the future, of course, impossible step to achieve this state, we need a process. We believe that the market players not without a fight, and will definitely try to find their own space, which is a market mechanism to enhance the capacity of Forced insurance company, identify the location, which is a high probability event.
Liu Feng also pointed out that, after pricing models, the accident rate that is high priced, zero integer ratio, that price is certainly high, in turn, reduce to zero the entire constraint OEMs ratio, improve security, the development of the automobile industry chain there will be a facilitator. "According to the situation of the pilot areas, it is expected to pilot six months to see the insurance company's operating data, if there is no problem, commercial vehicles have changed the country in due course will open."