According to the website of the Banking and Insurance Regulatory Commission, in September 2020, the Banking and Insurance Regulatory Commission promoted the implementation of the comprehensive reform of automobile insurance. Since the implementation of the reform for more than a year, the phased goal of "reducing prices, increasing insurance, and improving quality" has been basically achieved, consumers have generally benefited, and their sense of gain has been significantly improved. As of the end of October this year, the average premium paid by vehicles was 2762 yuan, which was 21% lower than before the reform, and 87% of consumer premiums were down. It is estimated that since the reform, the cumulative reduction of expenditure for auto insurance consumers has exceeded 200 billion yuan. At the same time, the average no-indemnity benefit coefficient (NCD coefficient) of commercial auto insurance has dropped from 0.789 before the reform to 0.753, and many low-risk car owners with good driving habits and low insurance frequency have enjoyed more premium discounts.
In retrospect, on September 3 last year, the China Banking and Insurance Regulatory Commission issued the Guiding Opinions on the Implementation of the Comprehensive Reform of Motor Insurance, which was officially implemented on September 19, 2020.
In general, this auto insurance reform is affected by the epidemic, superimposed on the decline in new car sales, commercial car fee reform and other factors, this auto insurance reform will further give insurance companies greater rights, make competition more diversified, or will ease the slowdown in the growth of auto insurance premiums.
From the perspective of the guiding opinions, it takes "protecting the rights and interests of consumers" as the main goal, and in the short term, it will "reduce prices, increase insurance, and improve quality" as a phased goal, and it has increased the insurance liability in 7 aspects, such as motor vehicle theft insurance, third-party special insurance, glass breakage insurance, engine wading insurance, spontaneous combustion insurance, regardless of deductible rate, designated repair shop, etc., and developed additional insurance products in two aspects, such as wheel loss insurance and medical insurance external drug liability insurance. Reasonable deletion of the exemption clause that is likely to cause disputes in the event of an accident and the deductible agreement such as partial deductible rate.
In terms of specific amounts, the total liability limit of compulsory traffic insurance has been increased from 122,000 yuan to 200,000 yuan, the limit of non-liability compensation has been adjusted according to the same proportion, the preferential rate of the consumers who have not incurred compensation has been increased, the three insurances have been raised to a maximum of 10 million yuan, and model regulations such as new energy vehicle insurance, motor vehicle accident insurance, and motor vehicle extension insurance have been formulated.
Reform the access and management methods of automobile insurance products, release new compulsory traffic insurance products and commercial automobile insurance demonstration products, change the access method of commercial automobile insurance demonstration products from the approval system to the filing system, and support small and medium-sized property insurance companies to give priority to the development of differentiated and innovative products; in terms of supporting infrastructure, comprehensively implement the real-name payment system for automobile insurance, actively promote the electronic insurance policy system, and strengthen research on new technologies and new applications such as the Internet of Vehicles/ New Energy / Automatic Driving.
In addition, it will also improve the market-oriented formation mechanism of commercial automobile insurance clause rates, improve the industry pure risk premium calculation mechanism, reasonably reduce the additional fee rate, etc., and at the same time strengthen and improve automobile insurance supervision, improve the effectiveness of supervision, strengthen intermediary supervision, improve the rate retrospection and product correction mechanism, strengthen the rigid constraint of solvency supervision, and prevent monopolistic behavior and unfair competition.