The second anniversary of the comprehensive reform of auto insurance is approaching, and the "half of the country" of property insurance is accelerating

time:2022-12-02 06:09:25 source:clevelanddrifters.com author:Stock market
The second anniversary of the comprehensive reform of auto insurance is approaching, and the "half of the country" of property insurance is accelerating

In the field of property insurance, auto insurance is the largest type of insurance. Although the proportion of its premiums has dropped recently, it still accounts for "half of the country" of property insurance. According to data released by the China Banking and Insurance Regulatory Commission a few days ago, in the first seven months of this year, motor vehicle insurance premium income was 462.5 billion yuan, accounting for 50.5%, down 6.3 percentage points from the end of last year. Two years have passed since the comprehensive reform of auto insurance was launched on September 19, 2020. In the past two years, many car owners have felt the "increase in volume and reduce the price" of auto insurance products. The comprehensive reform of auto insurance has been further promoted in many places, and the effect of “reducing prices, increasing insurance and improving quality” has emerged. For the top property insurance companies, the painful period of comprehensive reform of auto insurance has passed, and the growth of auto insurance premiums has rebounded significantly. The effect of "reducing prices, increasing insurance, and improving quality" shows that "When I buy auto insurance, I will find several insurance companies to compare the prices. In general, the price quoted by each company this year is a few hundred yuan to a thousand yuan lower than that of two or three years ago. The money varies. Because there is no insurance, the premiums show a downward trend every year." Mr. Li, who has more than ten years of driving experience, told the China Securities Journal: "I have heard of the comprehensive reform of auto insurance before. The small types of insurance purchased have been included, and the coverage has indeed expanded.” According to industry insiders, many low-risk car owners with good driving habits and low accident frequency have enjoyed more premium discounts. Zhang Lei, CEO of Cheche Technology, a digital insurance transaction service platform, told a reporter from China Securities Journal: "It has been almost two years since the comprehensive reform of auto insurance, and we can clearly feel that for car owners, the premium has dropped and the coverage has been widened; for insurance companies , the quality of business has improved, and the profits have gone up; for the regulators, the supervision of auto insurance has become more effective and strengthened. It can be said that the phased goals of 'price reduction, insurance increase and quality improvement' have been basically achieved in the comprehensive reform of auto insurance. This is conducive to further deepening the supply-side structural reform, safeguarding consumers' rights and interests, and achieving high-quality development of auto insurance." In March this year, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, said that the comprehensive reform of auto insurance in 2021 will save consumers more than 250 billion yuan. Soochow Securities Research Report pointed out that as of the end of the first quarter of this year, the average premium paid by consumers for cars was 2,808 yuan per vehicle, a decrease of 20% compared with that before the comprehensive reform, and about 89% of consumer insurance premiums decreased. The China Banking and Insurance Regulatory Commission pointed out that the comprehensive reform of auto insurance has been further promoted, and the effect of "reducing prices, increasing insurance and improving quality" has emerged. Further focus on business quality Auto insurance business is the "ballast stone" for property and casualty insurance companies' premium income and underwriting profits. Data from the China Banking and Insurance Regulatory Commission shows that in the first seven months of this year, auto insurance premium income was 462.5 billion yuan, accounting for 50.5%; last year, auto insurance premium income was 777.3 billion yuan, accounting for 56.8%. Although the proportion of auto insurance premiums has declined, it still accounts for "half of the country" of the property insurance business. Judging from the performance report data for the first half of the year, the auto insurance business of leading property and casualty insurance companies has gradually stepped out of the "pain period" after the comprehensive reform of auto insurance. Taking the "old three" auto insurance as an example, in the first half of this year, the auto insurance premiums of PICC Property & Casualty, Ping An Property & Casualty, and CPIC Property & Casualty were RMB 128.808 billion, RMB 95.502 billion, and RMB 48.169 billion, up 6.7%, 7.3%, and 7.9% year-on-year, respectively. %, compared with the "negative growth" trend in the first half of 2021 and the whole year of 2021, which has significantly recovered. At the same time, through measures such as optimizing the pricing model, strengthening risk screening, and refining expense management, the comprehensive cost ratios of the above three companies' auto insurance were 95.4%, 94.4%, and 96.6%, respectively, 1.3, 3, and 2.4 percentage points were optimized year-on-year. . Soochow Securities Research Report pointed out that from the perspective of premium income, the impact of the "comprehensive auto insurance reform" on the average car premiums has been basically cleared in the fourth quarter of 2021, and the auto insurance market has entered a new stage of development. "Today, the auto insurance market is rapidly reshaping. Large companies are further focusing on business quality, optimizing comprehensive services, and improving customer experience," said a senior industry insider. Regarding the future development of auto insurance, Ping An Property & Casualty stated that it will actively explore products and services such as motor vehicle mileage insurance. PICC Property and Casualty will accelerate the development of transportation ecological services such as "car life", and gradually build an ecosystem covering the entire life cycle of automobiles. CPIC Property & Casualty mentioned that, in the face of the future auto insurance market, it will focus on achieving the goals of optimal business development speed, best comprehensive cost results, and best customer management level. Increase the layout of new energy auto insurance At present, the auto insurance business of leading property and casualty insurance companies is also accelerating its inclination to new energy auto insurance, trying to gain a place in the new track. PICC Property & Casualty said that it has strategically developed new energy auto insurance, explored new growth space for personal customer business, promoted the speed and efficiency of corporate customer business, and continued to optimize the business structure. CPIC P/C said it will pay close attention to the development of new energy vehicles. "The launch of new energy auto insurance will help increase consumers' willingness to purchase new energy vehicles in the long run, enhance the innovation power of auto companies and insurance companies, and build a new pattern of auto insurance market." Zhang Lei said. In Zhang Lei's view, there is more room for innovation in new energy auto insurance products than in the past. "From the release of new energy vehicle insurance at the end of last year to the present, China's new energy vehicle market has been developing rapidly, and the number of new energy vehicles has exceeded 10 million, and the insurance industry has a very important law of large numbers. The larger the stock market, the greater the risk. The more balanced the allocation will be, the greater the room for product innovation. With the accumulation of new energy vehicle compensation data, the pricing factors accumulated by various insurance companies will be more abundant, and the pricing of new energy vehicle premiums will become more reasonable. With the continuous deepening and adaptation to the exploration boundary of new energy vehicle insurance, its comprehensive cost rate will gradually decrease in the future. From the first five months of this year, the cost rate of new energy vehicle insurance policies is slightly higher than 100%, but it is close to the break-even point. The recent operating data on our platform shows that the loss ratio of some new energy auto insurance products has basically dropped to a level similar to that of traditional fuel auto insurance products." "The new energy auto insurance released at the end of last year is still in its infancy, and the financial data model needs to be established. , the risk structure and risk cost of new energy auto insurance products are also quite different from traditional fuel auto insurance products." Zhang Lei said that the loss rate, accident rate and average indemnity of new energy auto insurance products are still higher than traditional auto insurance products. Insurance companies, especially small and medium-sized insurance companies, may set up more complex underwriting policies. New energy auto insurance not only puts forward higher requirements on the comprehensive strength of insurance companies, but also tests the strategic vision of various companies to deploy the new auto ecology.

(Responsible editor:Aerospace stock)

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