107 the provisions of new "insurance law": "the insurance clauses and insurance rates between the interests of the public insurance coverage, the compulsory insurance of insurance and new types of development such as life insurance, shall be submitted to the insurance supervision and administration department for examination and approval. The insurance supervision and administration department for examination and approval, the principles of protection of public interest and to prevent unfair competition principle. The scope of the examination and approval and the specific measures shall be formulated by the insurance supervision and administration department. The insurance clauses and premium rates of other insurance, shall be submitted to the insurance supervision and administration department for record. "For the next year in January 1st began to implement a nationwide car insurance premium rate market reform provides legal protection, has long come national insurance rate reform has finally surfaced. At present, many insurance companies have to rate calculation, design different rates, rate marketization wildly beating gongs and drums started up in insurance companies. However, rate marketization road is not as bad as initially expected smooth.
    A premium rate marketization, embarrassed
    Insurance clause and premium rate marketization, liberalization, by all the countries in the world as the development of the insurance market in a more mature stage, countries have experienced a long process. The insurance rate liberalization involves insurance liberalization, the liberalization of service products, the liberalization, so its quite difficult. At the same time, vehicle insurance clauses and premium rates liberalization also reflects the insurance market maturity, regulatory ability, and insurance companies operating capacity. From the international premium development history, in 1983, the birthplace of the first proposed the insurance premium of liberalization, but has to be implemented in 1994. in Asia, with 100 years of experience in the market of Japan, Juxian rate liberalization also started from 1998. South Korea is in 1998, 1999 years began to operate. Is the domestic industry estimates of market development, 10 to 15 years ahead of Taiwan, the premium is only opened in April 1st this year, and realize the liberalization, and various steps to limit, need about 10 years. Thus, car insurance premium rate market needs certain internal and external conditions to support. While China's internal and external conditions are not perfect, the market of insurance rate was brought to China's insurance industry some embarrassment.
    1, insurance companies lack of preparation.
    According to the provisions of the implementation process Chinese insurance premium rate marketization, will be officially in January 1, 2003 in the nationwide implementation of rate marketization, insurance companies from September 1, 2002 onwards, auto insurance terms, to Chinese CIRC declaration will be the implementation of the tariff. However, until the middle of October did not have an insurance company to declare, insurance companies are of the view that the lack of preparation, hasty.
    2, the insurance market consumption by high agency fees temptation, rate cut interest rates triggered agents, did not bring the expected effect of diving.
    In 2001 October, China CIRC in Guangzhou and Shenzhen on the car insurance premium rate market reform. In late December 2001, Huatai Insurance has become the first in Guangzhou to the newspaper by Juxian rate adjustment scheme of the insurance companies, the lower the rate reached 55%. However, China and Thailand in Guangzhou cut rates more than a month later, the market share of 1% and no corresponding increase, prices did not bring a large number of customers attracted to the opposite, business volume also declined by 10%. Huatai reduce the rate of the original intention is, the rate of market in the past already existing insurance button a button, put the past agents eat fee allowing more profits to the owners, but the leading status of automobile insurance market in agents, Huatai measures how much embarrassed.
    3, in terms of design is not perfect, the lack of insurance actuarial.
    Rate liberalization, not just on price differences, but also in the terms of the policy personalized, the insured can really get insurance in different clauses design. But our country insurance 20 years has been "a clause, a rate", the rigid single "unification" premium rate system, affecting the healthy development of China's rate of insurance industry. Therefore, be imperative to reform the insurance clause, but the industry is also worried, because the social expectations on the reform of value is very high, but under the existing conditions, reform movements can not be too large, is trying to do, to let people down, it will cause some negative effects to the whole reform of auto insurance. At the same time, the lack of basic data rate, and our country has been the lack of insurance actuarial, other sectors such as IT, network of the poor, seriously affecting the auto insurance market, the pace of liberalization.
    Two, the premium rate market is the inevitable trend of economic integration
    Although the rate of market in the country road is not so smooth, but an inevitable trend of rate marketization is the market economy and economic integration.
    1, premium rate market is conducive to fair competition in the market, is conducive to the protection of the interests of consumers
    Firstly, the insurance competition is the insurance rate elastic force and pressure, rate marketization, changes in premium rates vary with market information and make the necessary adjustments, while maintaining the relative stability of the rate level, to risk difference as the basis, reflects the moderate, fair, reasonable and relatively stable. Therefore, only the elastic rate can truly reflect the essence of competition law, strictly control the rate can not play the price adjustment of supply and demand functions, at the same time also ignores the law of value of market economy, make competition, price and demand in a distorted form, broken the market. As the auto insurance market in China, mandarin duck, eating, pay a single fee high return rate, a refund, operating behavior was not standardized despite repeated prohibitions, fair competition, these are not conducive to the market, the market is not conducive to the effective allocation of insurance resources.
    Secondly, rate marketization, premium rates reflect the fair and reasonable principle. The premium to the insured insurance fee will be compatible with the degree of risk insured faces. However, the strict rate regulation in the market to distort the state to achieve balance, according to the basic principles of economics, when the control rate is less than the market equilibrium rate, although consumers get extra surplus, but the insured losses that may arise. The insurer will reduce the supply to reduce losses, consumers will not be able to get insurance should be. Even if the insurance company to maintain operations, may appear insufficient solvency harm to consumers, the final. When the control rate higher than the market equilibrium rates, insurance companies to obtain additional producer surplus, but also reduce consumer demand, the deadweight loss. Visible, control rate to achieve maximum efficiency in the market.
    Once again, car insurance premium rate market will result in terms of diversification, risk diversification, which can meet the increasingly diverse insurance insurance demand, can make the safety running, claims a good record of the insured are fair and reasonable preferential rate, more critical is the pressure of competition will force insurance companies to improve the quality of service, help me China's insurance industry's healthy growth.
    2, the premium rate market is the inevitable trend of global economic integration, improve the core competitiveness of insurance companies
    The economic globalization, the internationalization of insurance is the inevitable trend of development. In Japan, Europe and the United States auto insurance business insurance industry in developed countries, in addition to legal liability insurance, design and sales of other insurance products has experienced from the disorderly competition, to strictly control the conditions are ripe, then to gradual transition to market regulation a development process. China has joined the WTO, all levels of government including the insurance supervision department, need to change concepts, remove unnecessary administrative control, the advanced experience of other countries and learn, combined with our actual situation, in terms of insurance clause and premium management system, accelerate the pace with international practice. At the same time, after the premium rate market, insurance market competition will come from the ground floor, more and more open, transparent. Company can according to the product to adjust the auto insurance business performance of the real rate, price leverage to play a regulatory role of the market. Moreover, in order to design a marketable product, and formulates the science reasonable rates, property insurance companies will have to improve the internal management level, strengthening information construction investment, introduce the international insurance actuarial system, technologies to increase insurance product content, so that we can better adapt to China's accession to the WTO after the insurance industry is facing fierce competitive market.
    Product innovation three, car insurance premium rate market
    In the face of car insurance premium rate market, the insurance company should take positive measures, and strengthen the development and innovation of the insurance products is an inevitable choice of insurance enterprises remain invincible. Insurance products are a kind of special product, it compared with other products have significant differences, mainly in the insurance products are not looking for a product, that consumers do not know or know it will not take the initiative to buy products; is a kind of security products; is a kind of mutual products; is a term strong product. Insurance products are generally includes three levels: core level, product, namely the rates and terms; two, tangible product added, namely, product brochures, corporate brand, product packaging; three, the intangible product added, the insurance products, which is to provide service. Therefore, the innovation of the insurance products from three aspects to be considered.
    1, refined products market, the establishment of China's insurance actuarial system, core level of insurance product innovation
    China's long history, vast, great differences exist around the folk, road risk status. But for a long time, the national unified rate, so that the risk of the insured and insurance rates are serious asymmetry. Therefore, accurate product positioning is important to guarantee the sustained, steady development of auto insurance business, market positioning is a key issue in the survival and development of the. Different companies can be based on their own market positioning different, development differentiated products, effectively improve the company's. However, market positioning requires effective premise and basis of certain.
    First is the accurate market segmentation. Based on accurate market segmentation is data resource and its efficient use, therefore, to establish the insurance actuarial is very necessary. However, long-term since the company entered a misunderstanding that insurance does not need to actuarial, that is not the case. The rating can generally have the following three methods: experience rate method, loss rate method and the pure rate method. Among them, the pure rate method is the most reasonable and scientific. But at present because our data not only the former two methods, so the establishment of insurance database, is conducive to the insurance business of our country towards a scientific and rational. Our country can learn from the experience of America, trade unions or the CIRC and the transport sector to establish insurance accident database, make insurance clause and gradually from the "from the" transition "from the car" and "the people" of the situation, change our terms "unification" of the situation, the prosperity of China's insurance. The second is the rational design of insurance products, insurance products to directly face the customer, so close to the customer demand for the product is the effective market positioning precondition; finally is the system of underwriting underwriting technology, perfect system is the market positioning strategy base to effectively implement. So the market positioning, reasonable refined products market, different management core level innovative insurance products will eventually make the overall form different from other companies of the insurance, so as to improve the company's competitive ability.
    2, the integration of China's motor vehicle insurance marketing channel, establish a corporate brand concept, improving the physical additional level auto insurance products
    At present, China's insurance market mostly is the implementation of the company agent underwriting, dealers and agents on behalf of the insurance industry, which aggravates the auto insurance market does not regulate the operation, increase the likelihood that the black box operation. Vigorously develop the broker system, the broker on behalf of the insured, not only reduce the non-standard operation, standardize China's insurance market, but also for the innovation of China's insurance market products, to maximize the interests of policy holders have great benefits. At the same time, increase the training and the establishment of China's assessor market. The assessor with expertise in insurance, can reduce the risk of the insurer, the insurance market is conducive to the standardization of operation. At the same time, can also increase the insurance claims of science, rationality and accuracy. There is positive significance for the establishment of a good social image of the insurance industry.
    At the same time, insurance companies should establish their own brand image. After joining the WTO, China's insurance companies and financial strength, competitive business has a long history of the company. Therefore, only the China insurance company set up a good brand image, strengthen enterprise culture construction, in order to increase the cohesion of the company, core to improve enterprise.
    3, improve service quality, improve the level of intangible additional car insurance products
    Premium rate marketization, management and service competition will become more important, and in the final analysis will focus on service claims. Under the market featured management of insurance should provide a full range of services, as a trend, this is undoubtedly correct, but in the current insurance service quality is not high, the insurer shall focus on claims service, a gradual transition to full service, otherwise it will put the cart before the horse. And provide free services is not desirable, the cost of services, free service or the insurance burden is overweight, or be passed on to the insured. Therefore, the author believes that at this stage of vehicle service should be located in: focus on improving the claims service, focusing on the development of toll style value-added service, moderate development of extension services do everything in one's power. at the same time, market operating rate declined, but risk remained basically unchanged, the compensation rate of rise of pressure, insurance company should prevent one-sided pursuit of control compensation rate and indemnities phenomenon, damage the interests of customers, undermine the company.
    Under the terms of joining the WTO, China's insurance companies are facing the protection period shorter than the life insurance company, China's insurance industry will face more challenges. Car insurance premium rate market is a necessary requirement to open and the development of China's insurance industry, strengthen the insurance product brand, build to meet the needs of the insured of insurance products, is an inevitable choice of insurance companies face the challenge of WTO. At the same time, attention should also be paid to the premium rate market, increased the difficulty of the insurance regulation, the CIRC shall according to the requirements of the new "insurance law", the establishment of scientific solvency regulation system, provides the safeguard for the healthy and orderly development of China's Insurance market.
    
    (author: Southwestern University of Finance and Economics)