Automobile insurance system reform and its effects on the zt

Automobile insurance system reform and its impact
[Abstract]This paper briefly introduces the present situation of the reform of vehicle insurance in China and the motor vehicle insurance clauses and premium rate management system. At the same time, also discusses the influence of the reform on the rate system, insurance products, sales channels and other aspects of the regulatory approach.
[Key words]InsuranceThe carReform
1Introduction
With the increasing development of the automobile industry and car ownership, China's auto insurance business is booming. At present, the automobile insurance in addition to the original car, has been extended to all motor vehicles. In spite of this, many countries in the world is still in use. Traditional auto insurance, and our country will be renamed the motor vehicle insurance, automobile insurance. Therefore, the automobile insurance and motor vehicle insurance does not distinguish.
2Reform of automobile insurance
2.1The status of automobile insurance
At present our country motor vehicle insurance revenue accounted for about 60% of property insurance, motor vehicle insurance has become the first property insurance in our country, the provisions of China Insurance, motor vehicle insurance clauses and insurance premium by the Insurance Regulatory Commission (hereinafter referred to as the CIRC) unified formulation. The insurance company does not have what difference in the insurance clauses and rates. The existing insurance products are mainly divided into two part of the basic insurance and additional insurance. The basic insurance for loss of vehicle insurance, third party liability insurance; additional risks to pilfer rush to deal with an emergency, the Secretary by accident insurance and breakage of glass, spontaneous combustion risk of loss, non accompany special insurance, are with the car and choose a smaller range.
2.2Reform of automobile insurance
In 2002 August, the China Insurance Regulatory Commission issued a notice on the reform of motor vehicle insurance clauses and premium rate management system. Chinese CIRC decided to reform the current insurance clause and premium rate management system.
Since January 1, 2003, the implementation of insurance clause and premium rate management system throughout the country. At the same time, China CIRC "on the issuance of the motor vehicle insurance clauses' ', and' the insurance premium rate of motor vehicle regulations' notice", "on the issuance of 'Shenzhen City motor vehicle insurance clauses' and' Shenzhen City motor vehicle insurance rate 'notice" in the insurance clause and premium rate will no longer in the country and Shenzhen city unified execution.
After the reform, the insurance (including insurance and additional insurance, the same below) the provisions to which the insurance company, submitted to the CIRC for approval. Modify or insurance clause and the use of other insurance companies are the same. The insurance rate for which the insurance company, submitted to the CIRC for approval. To adjust or choose to use other insurance companies, car insurance rates are the same. The company is approved, the branches of an insurance company may in its operating area to adjust the vehicle insurance rate, reported to the local insurance regulatory approval.
In September 1, 2002, China CIRC insurance clause and insurance company, began accepting declaration fee. In addition, the relevant provisions of the insurance company shall be China CIRC has submitted "motor vehicle insurance supervision quarterly report" and "motor vehicle insurance annual report from January 1, 2003". "The main index of vehicle insurance monthly report" and "motor vehicle insurance business statistics" abolished at the same time. Insurance clause, the reform of management system is to improve the rate of insurance supervision system, an important measure to promote the healthy development of the insurance market.
3Influence of the reform of auto insurance system
This reform of motor vehicle insurance China, its impact will be far-reaching. Will be shown in the following aspects:
3.1Rate system will be more reasonable
Before the reform, the terms and rates of insurance in China by the China Insurance Regulatory Commission formulated, formulate and strictly on the basis of "the vehicle factors", "make it rigidly uniform" existence "unification" and other drawbacks. Apparently be inopportune or inappropriate, and some insurers have unfair. If the insured rich driving experience. After the reform, vehicle insurance clauses and premium rates set by insurance companies reported to the China Insurance Regulatory Commission approval, insurance agencies in formulating, adjusting the auto insurance rates, will take into account the following factors:
· vehicle factors: claims records, vehicle usage (such as private vehicles and non private vehicles, commercial vehicle and non operating vehicle), type, brand type, approved tonnage, the number of passengers, body color, manufacturing date, whether fixed Park, accident record.
· area factors: driving regional road status, is running only in the specific route etc..
· with human factors: age, sex, age, occupation, whether fixed driver, the violation accident records, affect the safety of driving factors. Therefore, after the reform of the premium rate from out of the car, to the humanism based, will be more scientific consideration of the insurer and the insured them.
In consideration of the above factors, the rate system will be more reasonable, for different customers will be treated differently, specifically in the premium payments will not be the same.
3.2Product diversification
As a result of the rate liberalization, entry and the foreign insurance company, the insurance companies competing for customers will be increasingly fierce. At the same time, customer demand for insurance products and services are gradually moving towards diversification. This will encourage insurance companies to adapt to environmental changes, market changes, changes in customer demand, product innovation have, develop different insurance products in the premium rate and product content, thus the emergence of new situation of car insurance product diversification.

In the case of Japan, in 1996 the Japanese government carried out the reform of the financial system, the insurance industry began to relax the restrictions and liberalization. In 1997 AIG's AMERICAN HOME insurance company designed and developed a "risk segmentation type automobile insurance", the insurance products according to the risk degree of each driver to produce premium, in addition to considering the current car accident types, experience and other factors, the age, gender, region, vehicle use as the new rate factor. Such risk lower pilot insurance costs are low, most can be reduced from 30%. SECOMU Oriental property insurance company began direct sales "cost return type automobile insurance" from 1998 December onwards, the insurance products for saving to pay agency fees, relatively low prices, compared with the old insurance products, all insurance premium of about 20% lower.

3.3Supervision mode will change

This reform will make the regulator in the past ", formulated in terms of rate of change, the insurance company executive" is the "insurance company independent setting terms, rates, regulatory approval". The insurance regulatory authorities from the original premium makers into real regulators. The insurance company will have to submit the "motor vehicle insurance supervision quarterly report" and "motor vehicle insurance annual report from January 1, 2003".

This reform, China Insurance Regulatory Commission has approved documents require the insurance agency received the insurance regulatory department, should beAutomobile insuranceClause, tariff and tariff for use to the public, can be used. The insurance company develop or modifyAutomobile insuranceTerms, should be easy to understand. Among them, the basic clauses should include the following elements: (1) the scope of insurance subject; (2) the insurance liability, the liability exemption; (3) determine insurance amount or the limits of liability; (4) the insurance liability start period; (5) the insurer, the insured (the insured) right, obligations; (6) for processing; (7) the liability for breach of contract and dispute settlement; (8) jurisdiction. Moreover, declaration or the use of insurance institutionsAutomobile insuranceThe terms orAutomobile insuranceOne of the following situations such as the existence of premium, insurance supervision departments have the right not to grant the approval shall be ordered to stop using or insurance institutions: (1) the relevant provisions of violation of laws and regulations, administrative rules and regulations or the insurance regulatory department; (2) damage the public interests of the society; (3) in violation of the principles of insurance; (4) the content of unfair or rate unconscionability, against the applicant or the insured's legitimate rights and interests; (5) the rate is lower than the cost or may endanger the solvency of insurance companies; (6) the basic clauses content is not complete or important content of insurance liability, liability exemption, unclear or stultify oneself place; (7) other causes that insurance supervision department the.
Therefore, the focus of supervision will be the insurance company's solvency, require the insurance company to increase transparency, fair competition, urge insurance companies to regulate the market.
3.4ActuaryThe function will be more prominent
After the reform,Automobile insuranceRates shall be formulated by the insurance company, according to "motor vehicle insurance clauses and premium rate management system reform" insurance institutions reporting guidelinesAutomobile insuranceThe rates, should be submitted toAutomobile insuranceMeasurement report rate, including:
(1) rate formula: pure rate formula and additional rate formula;
(2) the measured data: Standard experience loss rate, the expected loss ratio, expected the management fee rate (should be shown separately agent fee ratio), the expected profit rate, the adjustment factor;
And submitAutomobile insuranceThe rate of scheme, including:
(1) of the previous year operating condition (the material only in the adjustment rate);
(2) rates the formulation or adjustment;
(3) establish or adjusted operating conditions;
In addition, the insurance company making premium rate should increase the scientific and precise: strengthen the accounting and basic data for the rate of accumulation, formulate, adjust and provide sufficient basis. Thus, after the reform,ActuaryThe insurance company will more and more prominent the role of.
3.5The diversification of sales channels
At present, facing the public automobile insurance products is generally taken by the agent based marketing system, with more insurance companies to enter this field, diversification and insurance products, in order to make the insurance product to the market quickly, there will be a variety of sales channels, such as: direct sales, telephone sales, online sales, and the use of form in other industry brand image, to existing customers in other industries associated with the type of the implementation of the insurance marketing.
In addition, the automobile club, community studio sales of insurance products will become an important way of selling. For example, the Longhua Automobile Club will be around 100 neighborhood studio in Beijing, and Shanghai, Guangzhou, to achieve chain. In American, Automobile Club Community studio have all evolved into the insurance agency. The biggest different community studio and common agency, is it good customer interface, general insurance personnel to maintain contact with customers, is the topic of insurance, the rest are paving the way, time is long, hard to avoid embarrassment. The Automobile Club theme can be a car repair, car maintenance, can also be a car travel, car fashion. Finally, the automobile insurance. But by the insurance business is the core of its profit point. 3.6Service quality will be further improved

With the development of China's insurance industry began to relax the restrictions and rates for liberalization, insurance products and insurance company more will join the insurance market of our country, and the China Insurance Regulatory Commission has approved Germany GERLING insurance company and several foreign companies in Shanghai, Guangzhou and Shenzhen (another 10 city planning in the two years after the opening of succession) property insurance, competition will be very fierce. Those with a long history of foreign insurance companies to high-quality services, such as the German GERLING insurance company, has been proposed to provide value-added service in car insurance, for example, when a customer car after be or get out of danger, they will lend you a car. Visible, competition will force the insurance companies to improve service quality, to provide high value-added services; encourage insurance companies (especially in China's Insurance Company) to establish a sense of service, improve service efficiency; and provide high-quality pre-sale, sale and after sale service; to change from "the easy, with the rationale of" difficult situation.
Reference
1Zheng Ming. The strategic reform of the vehicle insurance system. China insurance report, 2002.4.17
2Li Manyun grasped the opportunity to develop China insurance industry, finance and insurance, 2002.3
3Li Qiang. The motor vehicle insurance and the commercial motor vehicle insurance (on). The commercial vehicle, 2002.5
Author: Hu Shuhua Guo Haitao Chen Yunguang of the Wuhan University of Technology source: "Shanghai car" in 2003 second