The sudden attack of the epidemic superimposed comprehensive reform is deepened: UBI car insurance breaks the cocoon?

Aftermath of the epidemic, and then raids.

After the upgrading of epidemic prevention and control measures in many cities, working from home has become the mainstream.

While consumers are implementing epidemic prevention measures more strictly, a topic has been raised again: can my car insurance be reduced or postponed because the vehicle is suspended?

The last time the car insurance premium reduction and extension policy was implemented, it was traced back to the first outbreak of the new crown epidemic two years ago, when the Banking and Insurance Regulatory Commission issued the Notice on Doing a Good Job in Car Insurance Services During the Prevention and Control of the New Crown Pneumonia Epidemic.

Subsequently, local insurance industry associations have implemented this work, hubei and some regions have deferred the collection of car insurance premiums, and especially for commercial passenger vehicles to apply for insurance contracts.

This policy is also an unprecedented breakthrough in the history of car insurance. It means that car insurance is billed on a per-use basis and another big step forward.

Today, a variety of vehicle usage scenarios that pay by mileage and usage have emerged:

For example, the birth of short-term car insurance, "high-speed insurance" and other products purchased by vehicles in Hong Kong and Guangdong shows that the development of car insurance to the "UBI" model has practical demands and needs.

The call for the UBI model of car insurance under the aftermath of the epidemic is more like a "cry" of the people's aspirations.

We can't help but ask: Can UBI car insurance break through the cocoon in 2022?

1

-Insurance Today-

Policy level: UBI car insurance is ready for everything, only Dongfeng?

In fact, the voice of whether UBI car insurance can be implemented in China has not been broken since the comprehensive reform.

"Today's Insurance" has also made many follow-up reports, respectively expounding the positive and negative views of whether UBI car insurance can land in China.

Overall, UBI auto insurance already has a trial basis at the policy level.

The most intuitive is the "Guiding Opinions on the Implementation of the Comprehensive Reform of Automobile Insurance" issued by the China Banking and Insurance Regulatory Commission, which clearly puts forward the requirements for the comprehensive reform of automobile insurance for expanding and optimizing the protection services of commercial automobile insurance:

"Support the industry to formulate model clauses for new energy vehicle insurance, driver and occupant accident insurance, and motor vehicle extended warranty insurance, and explore the development of innovative products such as motor vehicle mileage insurance (UBI) in new energy vehicles and qualified traditional cars."

The guidance is regarded as the guiding path for the implementation of the auto insurance reform, and in the case that the industry has introduced the exclusive clause of xinyuan auto insurance and the accident insurance of drivers and passengers, it is speculated that the next step of the industry is to enrich the reform of commercial vehicle products, according to the literal understanding, it is very likely to explore UBI auto insurance.

Moreover, recently, the Guangdong Supervision Bureau of the Banking and Insurance Regulatory Commission also pointed out in the article "Research on the Path of Mainland Pilot UBI Auto Insurance under the Background of Comprehensive Reform of Auto Insurance":

"In terms of cultivating new momentum for the development of auto insurance, the mainland can actively explore the potential needs and innovative products and services in the field of UBI products, mileage insurance products and new energy auto insurance, especially for areas with a good foundation for comprehensive reform of auto insurance, such as the Guangdong-Hong Kong-Macao Greater Bay Area, which can adopt a first-come, first-served strategy, and then push it to the whole country."

If you think about an earlier period of time, in June 2019, the Ministry of Transport and other twelve departments and units jointly issued the "Green Travel Action Plan (2019-2022)", encouraging supporting preferential measures for car owners who voluntarily stop driving, and exploring the establishment of a system such as linking the long-term suspension of cars with preferential exemptions and exemptions for motor vehicle insurance.

In addition, the above-mentioned "Notice on Doing a Good Job in Car Insurance Services During the Prevention and Control of the Novel Coronavirus Pneumonia Epidemic" provides policy support for the deferral of car insurance premiums and the extension of contracts.

Combining the above policy foundations, it has opened up an intersection for auto insurance to innovate the UBI auto insurance model.

After the implementation of UBI car insurance, the insurance industry can formulate and provide differentiated and personalized car insurance service plans according to the consumer's vehicle suspension status or the frequency of vehicle use throughout the year.

At that time, the problems of premium reduction and extension of contract term caused by the epidemic will also be solved.

2

The data level that everyone cares about: the barriers have been broken, and the singularity is coming

Previously, the main barrier to UBI's difficulty in landing was the insufficient number of vehicles equipped with vehicle networking equipment.

According to the definition of vehicle networking equipment in the previous auto mileage insurance clauses formulated by the industry, that is, "vehicle networking equipment refers to hardware devices (front or rear) or other intelligent software such as TBox, OBD and other hardware devices (front or rear loading) that can accurately measure mileage data in real time through the insurer's approval of the insurer, and the number of vehicles that meet this requirement is less than 10 million.

Because, even in 2018, the penetration rate of the Internet of Vehicles in the new car market at that time was only 31%.

However, the development speed of the Internet of Vehicles is far beyond people's imagination. The development of vehicle intelligence technology is more like a singularity explosion.

In the entire automotive market, in just two years, the equipping rate of new cars with intelligent cockpits (that is, vehicles with voice recognition control systems, Internet of Vehicles, and mobile phone interconnection/mapping) has reached 86.42%.

According to the "2020 New Car Intelligent Survey Report":

Among the 265 new car series listed in 2020, the proportion of car series with intelligent cockpit function reached 86.42%;

Among the 1099 models, the proportion of smart cockpits has also reached 73.79%, and the corresponding configuration has been lowered to low-end models, and many car series have achieved standard equipment for all series.

If the vehicle also has two or more of the three items of automatic driving assistance system, automatic parking entry, and active safety system, and has an OTA remote online upgrade system, it can be called a "smart car".

In 2020, smart cars accounted for 33.58% of the new car series, which has exceeded 30%.

According to this development speed, the Internet penetration rate of new cars will reach more than 90% in 2022; the proportion of smart cars in new cars will exceed 60%, which will also be a high probability event.

In the field of operating vehicles, it is required that the vehicle must be installed on the road with positioning systems and safety monitoring equipment.

Therefore, the problems that have been plaguing the auto insurance industry such as obtaining effective on-board dynamic data and data credit grants by consumers will no longer be technical problems.

This shows that UBI car insurance, at least from new cars and operating vehicles, is eligible for trial implementation.

3

Operational level: The main body of the industry has gained a breather, and UBI car insurance has ushered in vitality

For the auto insurance industry, the emergence of the epidemic may once again give the entire industry a chance to breathe.

And this also makes UBI car insurance usher in the best opportunity to launch.

On the one hand, in 2022, the growth rate of auto insurance premiums in the entire industry has picked up, the foundation of auto insurance premiums has been solid, and it is difficult for the industry to return to the situation of negative growth, and the pressure on scale is no longer there.

On the other hand, the reduction of people's travel, the insurance rate of car insurance is expected to continue the trend in 2020, which will temporarily alleviate the overall compensation pressure of car insurance, so that the car insurance industry can return to the profit cycle, and there are expectations.

Therefore, under the expectation of "double rise" of premiums and profits, if you can launch conditional UBI car insurance within a certain range, you can control the possible fluctuation impact of UBI car insurance to the minimum.

Moreover, this will also give small and medium-sized companies a chance to innovate and develop.

The Guiding Opinions have pointed out:

Introduce support policies to encourage small and medium-sized property insurance companies to give priority to the development of differentiated, professional and characteristic commercial automobile insurance products, give priority to the development of commercial automobile insurance products through online sales, telemarketing and other channels, promote the healthy development of small and medium-sized property insurance companies, and improve the multi-level property insurance market system.

This is the industry's requirements and expectations for the transformation of car insurance for small and medium-sized companies.

More importantly, compared with the new energy vehicle insurance that has been implemented in the industry, UBI automobile insurance can achieve strategic symbiosis and complementarity with new energy automobile insurance, reducing the difficulty of small and medium-sized companies to develop channels independently.

Especially in the field of operating vehicles, small and medium-sized companies themselves have a certain basis for business selection, and are expected to stand on the same starting line with large companies to achieve direct competition.

Therefore, UBI car insurance is an imaginable path of innovation and development for small and medium-sized companies.

postscript

Give the industry hope, but also give yourself hope

Although UBI car insurance has not been clearly included in the implementation plan.

However, when the market encounters force majeure, should it also be considered separately?

Throughout history, disasters have not necessarily brought people one-sided sadness and hardship.

On the contrary, many times, disasters give human beings the opportunity to rethink and constantly promote self-learning and improvement. In the face of disasters, human beings can still make positive actions optimistically, challenge some crises and difficulties that have never been encountered, and stimulate human creativity.

Car insurance, at this moment, may also reflect the role and significance of reform.

Because, we always think from the perspective of consumers.

The pursuit of a car insurance model that is beneficial to consumers is the original intention of car insurance reform.

This time, I hope that UBI car insurance, under the aftermath of the epidemic, can break through the cocoon: to give hope to the industry, but also to give hope to themselves.

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