Insurance fee reform pilot start low-risk owners will enjoy lower premiums

Posted on 6/3/2015 10:19:57 AM

From June 1, commercial auto insurance reform has experienced more than 10 comments and over 600 million pieces of historical data industry after several rounds of estimates implementation of a comprehensive ground.
Since June 1, 2015, all property insurance companies fully commissioned the new commercial vehicle insurance clauses and premium rates in Heilongjiang, Shandong, Guangxi, Chongqing, Shaanxi, Qingdao and other six pilot areas, which marks the full floor commercial auto insurance reform implementation. After the fee reform pilot started, rates and risks will be more match, a number of low-risk owners will enjoy lower auto insurance premiums.
In this systematic project, differential pricing is undoubtedly the most central concern. "First Financial Daily" reporters learned that the premium is calculated as the reference premium multiplied by the rate adjustment factor, while the benchmark premium benchmark pure risk premium / (1 surcharge rate), wherein the reference pure risk premium to insure each primary insurance and additional insurance premiums and basis risk.
In fact, behind this complex formula is very simple truth. A car insurance industry analysis: "Different risk owners will have different rates, but the insurance companies according to their coefficient pricing, in other words, the companies offer a car is not the same in may."
At present, the China Insurance Regulatory Commission has completed the approval of the pilot areas property insurance commercial insurance products to our new pilot areas have local insurance regulatory agencies related to property insurance system construction, system transformation, personnel training, documentation and replacement work carried out acceptance and guidance . CIRC sources, the next step, the CIRC will be summarized on the basis of pilot experience, timely commercial auto insurance reform to the country.
Premium gap significantly
Calculated according to the above formula, the owner of the gap between different risk premiums will be very obvious. "According to some factor calculation, the lowest premium discount can go to 4 fold, but for the insurance companies, commercial fare change course than to reduce premiums, but some differences and distinction."
Property & Casualty Insurance Regulatory Commission Liu Feng told the director, "First Financial Daily" correspondent, said: "independently determine the details of the rate benchmarks, models database will be clear in the pilot program." And in driving habits, different models and so on a variety of factors determine the price of auto insurance will become a reality.
A variety of different specific differences are reflected in what areas? The first is the risk premium, the benchmark pure risk premiums to insure each primary insurance and additional insurance premiums and risk benchmark pure, pure risk premiums benchmark pan according to the existing fee schedule, and the introduction of models coefficient takes into account differences in models; second is rate adjustment factor, according to an industry, "First Financial Daily" correspondent normative documents obtained show that the coefficient = NCD coefficient × coefficient × independent underwriting factors independent channels. NCD compensation coefficient based on the historical record, according to NCD coefficient comparison table rate adjustment, self-underwriting factors independent use rules based company reported factor adjustment used within the specified range, the independent channel coefficients based company independently reported coefficients using rules, adjustment used within the specified range.
Also worth noting is that these documents will be divided into 15 kinds of insurance specific different types of insurance, including car damage insurance, third party liability insurance, the whole car robbery insurance, broken glass, a separate insurance and so on.
Gradually expand the autonomy
China Insurance Regulatory Commission said that the establishment of a commercial auto insurance industry reform model clauses based company innovative provisions supplement the provisions of the management system and the market rate formation mechanism, commercial auto insurance product choice of consumers will be more fully respected, insurance company Commercial auto insurance ratemaking autonomy will be gradually expanded.
After advancing providers fare change, commercial auto insurance coverage will be further expanded, commercial auto insurance product supply will be more abundant, commercial auto insurance premium rates is generally stable, but rates and risk more match, many low-risk owners will enjoy lower auto insurance premiums.
After the commercial insurance fee reform, whether the entire insurance market will change the competitive landscape? Data show that in 2014 insurance premium income of 551.593 billion yuan, accounting for the proportion of property insurance premium income reached 73.11 percent, the vast majority of insurance company's main insurance. From the service object, the 2014 car ownership and insurance rates rapidly.
China Insurance Regulatory Commission said that the reform of property insurance industry will promote the transformation and upgrading, to further stimulate the market dynamic, optimize the market structure, guide property insurance companies into competition mode and development. A large insurance company said: "differential pricing to influence the pattern is difficult to say, it is difficult to assess what is good for big companies or small companies is good." According to industry estimates, after the reform, the insurance company has a 15% fluctuate independent pricing and release the car networking Insurance feedback careful driving potential users. According to KPMG's report on vehicle networking, car networking on the pricing of the vehicle mileage might, speeding frequency, etc. into scoring factors, which may be detailed to a screeching halt as the number of times per hundred kilometers, driving home a percentage of the number of kilometers and so on.

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