Before the rate liberalization, South Korea in 1992 premium income accounted for 12% of GNP, the advanced level in the world. With the increasing openness to the world insurance industry and the trend of liberalization, foreign open to South Korea insurance market is more and more high. However, South Korea, many insurance companies have been formed competition
Department of insurance premium, but still the tariff rate, rate of insurance actuarial and underwriting technology, product development and statistical information system of collecting insurance company competitiveness based action behind the foreign insurance company. In order to strengthen their competitiveness, Korea insurance companies began to explore and implement rate liberalization.

South Korea began to implement rate liberalization from 1994, until 1996 phased introduces discount discount rate, the insured specific rate (life insurance rate and traffic violation record rate), and on base premium for floating rate. By 1998 the abolition of the floating rate system, the introduction of the respective characteristics according to the insurance company to develop free rate system, until now. South Korea's auto insurance rate liberalization has achieved remarkable results.

The first difference in rates

According to the purpose and nature of all, the automobile insurance is divided into personal, business, business three categories. Generally include liability insurance, the compensation, compensation, compensation for the accident of their own vehicles, damages and uninsured vehicle damages, the liability is the basic rate of different. Basic premium by the pure premium and the additional premium. The insurance company can use the standard pure premium itself revised, and according to their business to develop additional premium. At the same time, according to the main drivers of different gender, age is the difference in rates; different rates apply to different life insurance; according to different traffic violation record rate to implement differentiation; according to the actual compensation rate to adjust the pure premium etc..

Second. In the aspect of product system improvement

Because the rate liberalization, the diversification of sales channels, the prohibition of the development of a unified product policy, South Korea all insurance companies have launched their own insurance products, the coexistence rate competition and product competition situation. South Korea has developed the PLUS auto insurance in 1999; the automobile insurance pays great attention to the other security (for bodily injury and property damage compensation to others), and for the protection of the insured person (I / I vehicle body) deficient situation, developed the PLUS personal car insurance and PLUS for auto insurance business. South Korea at the auto insurance products are mainly: the private car insurance, car insurance, business by business car insurance, car insurance, PLUS private PLUS service for two wheeled motor vehicle insurance, car insurance, insurance and insurance of agricultural machinery drivers. Security are divided into five kinds: the bodily injury compensation for loss of property of others; compensation; the insured person harm; loss of vehicle insurance is not insured losses caused by the vehicle. In addition, Samsung fire & Marine Insurance Company sold high protection type products developed in 2000 (A-TOP). Attracted other companies alone to develop their own products, some insurance companies to develop long-term savings type insurance products.

Third. In the diversification of sales channels

The traditional way of selling auto insurance is through agents and marketing sales personnel. But because of excessive fees and sales compensation, auto insurance has been the existence of high cost, low efficiency problem. With the tariff liberalization, the insurance companies in order to enhance the competitiveness and improve the sales mode. Korean insurance company resume once abolished telephone sales. At the same time, since the premium of liberalization and the establishment of professional Motors Insurance Corporation, a variety of new insurance product sales online transactions play obviously effect. Haidong fire insurance companies began to develop the Internet in 2000 May selling insurance products, the product rate than traditional insurance products, low rates of 8%. In order to carry out normal online sales activities, admitted that the electronic signature certification of electronic commerce law sixteenth stipulation and its validity, to protect and allow the use of electronic signature. At the same time in order to guarantee the reasonable selection of the insured, preventing the license for business, false advertising, insurance fraud led to the insured interests are infringed, the provisions in the online sales center published the rights and obligations and other relevant matters of the insured. In addition, in 2000 January by insurance companies and banks, the insurance agent can be directly in the bank sales of insurance products, now carrying out bank as an insurance company, agency, sales of insurance products of bank insurance model.

1 from the car insurance premium rate market point of view, South Korea several stages to complete the full liberalization rate (first increase range, floating rate over a period of time to execute complete rate liberalization), but our country is currently to the premium rate market direct transition. South Korea stages rate liberalization practices in order to ease the impact of automobile insurance market, to ensure that customer identification rate liberalization. Therefore, put forward higher requirements of direct transition in China on China's Insurance supervision. If excessive competition between the insurance companies, the expected results will not bring high efficiency, low premium, it will lead to the bankruptcy of the company and the high premium, the ultimate interests of insured. Therefore, the insurance supervision departments should correctly guide the market rate, strive for a soft landing, to ensure fair competition among insurance companies, strengthen the operating status of the supervision, and guide the insurance company reserve the appropriate amount of the payment reserve. Regulatory departments should encourage insurance companies to develop new insurance products, and actively guide the insurance company according to the characteristics of their own making method of calculating premium. In the absence of experience, how to open the insurance market at the same time the pipe is good, it is a challenge to China's insurance supervision department.

2 from the insurance rate difference, our insurance company to develop the rate, not only according to the car factors and human factors, but also on the basis of regional factors, its complexity obviously, therefore, realize the difference of car insurance premium, the first to establish a perfect car insurance actuarial system, equipped with a certain number of professional actuaries the. Secondly, the implementation of differentiated Juxian rate, but also to establish a complete statistical database, completes the data collection work. These are the basic conditions of the implementation of auto insurance rate marketization.

3 from the improvement of the whole product system, South Korea has built up a relatively complete system of insurance products, and our current insurance insurance basically only car damage insurance and third party liability insurance. The third party liability insurance including the bodily injury compensation and other compensation for damage to property, car damage insurance compensation is the loss of vehicle insurance, but not to the insured personal injury protection. Our new "insurance law" allows the insurance company short-term personal insurance, so the insurance company should speed up the development of various people with insurance related insurance, including the driver and passengers in the car insurance accident insurance, actively carry out the innovation of products and services. In addition, notably, prevent uninsured motorist insurance in foreign countries is very common, USA even the insurance included in the category of compulsory insurance. This insurance refers to insurance uninsured automobile owner or the driver includes: ① driver escapes; the stolen car driving; the policy failure of the insured; the people can not afford the premium; the luck and uninsured; we don't cover the vehicle or the driver or even if the car owner or the driver is insured, but because the insurance amount is too small, and the actual damages caused the difference is too large, resulting in inadequate compensation phenomenon. In order to solve the above problem, the insured may insure against uninsured motorist coverage, can get sufficient and determine the claims, this is done in order to compensate for the loss of the accident. Our insurance companies should draw lessons from foreign insurance, providing insurance for the insured to more comprehensive and reasonable, so as to improve the company in product and service competitiveness. China's compulsory automobile insurance includes only the third party liability insurance, foreign not only commercial insurance is very developed, but also a comprehensive compulsory insurance. Compulsory insurance of liability insurance, including American prevent uninsured motorists insurance and no fault auto insurance. Compulsory insurance in Britain include the third party liability insurance, medical insurance, emergency accidents disposal costs. These practices ensure the accident rescue and compensate the victim can get timely.

 4 from the diversification of sales channels of view, our country must realize the smooth transformation of the insurance competition mechanism, be like South Korea, to open up new sales channels. China's auto insurance has been mostly sold through an agent, but the agent, sales of products is not conducive to the realization of the real market rate. This is because, in terms of rate marketization, the company in order to occupy the market share will have lower rate, but this means that will reduce the agent costs, then the agent driven by benefit the business will be transferred to the agency fees higher, therefore the insurance company to maintain the volume of business but had to reduce the car prices at the same time improve agency fees, insurance company's situation more distress. Visible, unreasonable agent system that market forces lost its role. In order to proxy mechanism to solve the high cost, low efficiency, the insurance company should actively develop online sales and phone sales and other emerging marketing way, strengthen cooperation to facilitate the customers. The insurance company insured, fair and orderly market competition, real market car insurance premium rate. ("Chinese insurance")