Research On Market-oriented Reform And Government Regulation Of Auto Insurance Premium Rates In China

As an important pillar of property insurance industry in China,auto insurance has played a significant role in developing risk management,organizing economic compensation,and promoting social stability,and thus cannot be ignoredThe auto insurance rate is a core element in the operation and management of auto insurance.Firstly,it not only directly affects the balance between the consumer’s premium expenditure and the insurance protection,but also participates in the process of distribution and redistribution of the national economy.Therefore,it is closely related to the issue of social welfare.Secondly,the auto insurance rate directly affects core indicators such as the operating results and solvency of insurance companies,which in turn affects the structure and order of the property insurance market.So,it is related to the stable operation of the entire insurance market and even the financial market.Finally,auto insurance rate is related to road traffic safety and the level of automobile consumption,and is related to the development of the upper,middle and lower reaches of the automobile industry in addition to the insurance industry.The exploration of reform should also be carried out under the premise of considering the operation of upstream and downstream enterprises.Therefore,conducting research on both the reform of auto insurance premium rates and government regulation have important theoretical and practical significance.At the same time,we must also see the difficulties and challenges existing in this industry.However,at present,due to various reasons such as the particularity of vehicle insurance and the positive externality of the auto insurance market,the world is facing the challenge of how to achieve the scientific development of auto insurance rate,the rationality of the adjustment of the interests of all parties and the stability of auto insurance market operation in the construction of auto insurance rate regulatory system.Up to now,different market participants have different views and conclusions on the important issue of market-oriented reform of auto insurance rates due to their own interests.This requires a coordinated and reasonable understanding to clarify the ins and outs of the marketization of auto insurance rates,and then to provide an objective and calm perspective for all parties involved in the market through conducting researches on the market-based reform of auto insurance rates and government supervision from a theoretical and practical perspective.By systematically analyzing and sorting out the dual attributes of the auto insurance market as an insurance market and an ordinary transaction market,this paper divides the auto insurance market into monopolistic competition market,information asymmetry market and market with strong externality effects from the perspective of modern economics.And further application of the perspective of regulatory economics makes it clear that it is necessary to continuously promote the market-oriented reforms of auto insurance rate and improve the efficiency of market operation.At the same time,external supervision is also required to provide supervision and guidance for the rational operation of the auto insurance market.Furthermore,based on the unique institutional constraints of China’s auto insurance market,this paper demonstrates from the perspective of a combination of theoretical analysis and empirical analysis that the role of government regulation plays in the process of China’s auto insurance premium rate marketization reform and its effect,especially on market operation and consumers welfare promotion.It has a positive effect in two dimensions,which confirms the theoretical logic of seeking a "double balance" between promoting the market-oriented reform of China’s auto insurance rates and strengthening price regulation in the government industry.By comparing and analyzing the models,the paper concludes that the current market-oriented reform and government supervision of auto insurance rates in China still needs to adhere to the government’s leadership,and other players in the market should actively participate in and coordinate in a realistic way.Specifically,the research content of this paper includes the following eight chapters:The first chapter is the introduction,expounding the background,significance,purpose,content,methods,innovations and deficiencies of the research on auto insurance premium rate supervision.The first part describes the research background of this paper.Starting from the many changes in China’s auto insurance premium rate supervision system,it points out the social background of the reform of the auto insurance premium rate supervision system and the practical value of discussing this issue.The research significance part points out the significance of studying the market-oriented reform of auto insurance rates and government supervision from the perspectives of theory and reality,and draws out the purpose of the third part,that is,to clarify the theoretical basis and realistic logic of the market-oriented reform of auto insurance rates and government supervision,from a combined qualitative and quantitative analysis perspective to provide a more unified understanding of the issue.Besides,it provides policy suggestions for the implementation of China’s auto insurance rate marketization reform.The second chapter is a literature review on the market-oriented reform of auto insurance premium rates and its supervision.This paper sorts out,analyzes and summarizes the domestic and foreign research literatures directly related to the supervision of auto insurance rates,laying a foundation for the theoretical analysis of the market-oriented reform of auto insurance rates and government supervision in China.By sorting out the current market-oriented reform of auto insurance rates,this paper believes that it is of great theoretical value and practical significance to clarify the relationship between China’s auto insurance rate marketization reform and government supervision,and to test the effectiveness of the current marketoriented reform of China’s auto insurance premium rate.The third chapter systematically analyzes and explains the necessity of the market-oriented reform of auto insurance rates and the necessity of government supervision.Firstly,it introduces the basic principles of insurance economics related to the research of the auto insurance premium rate supervision system,which lays a pertinent theoretical foundation for the research of the full text.Secondly,regarding the theory of reform of the auto insurance premium rate supervision system,it starts from actuarial theory,clarifying the objective mechanism of auto insurance premium rate generation,and then combined the market with insurance theories to further clarify the inevitability of the marketization of auto insurance premium rates and the defects of the market.Based on the theory of regulatory economics,it makes clear the importance of government supervision in the process of market reform of auto insurance rates.The fourth chapter is an international comparison of the auto insurance premium rate supervision system,which comprehensively analyzes the origin,background,evolution,reasons,impacts,pros and cons,similarities and differences,evaluation,trends of marketization,and summarizes the overseas auto insurance premium rates and related systems reforms,and refines the international common practice in this field,and then compares them with the Chinese models.It finally puts forward the future direction and path of China’s auto insurance rate marketization reform and its supervision.The fifth chapter makes a detailed and systematic analysis of the origin,evolution,status quo,predicament and risks of auto insurance premium rate marketization reform and government supervision in China.Based on the theoretical analysis in Chapter three,this chapter focuses on the combination of practical experience and theoretical basis.Considering China’s unique national conditions and social conditions,it sorts out the current generation mechanism of China’s auto insurance premium rates.By analyzing the current operation situation of relevant market operations,the difficulties and risks,it proposes that the government supervision is needed to promote the efficient operation of the auto insurance market.Furthermore,the effect of government regulation also needs to be analyzed through quantitative investigation methods.The sixth chapter,based on the review of China’s auto insurance rate marketization reform,empirically analyzes the implementation effect of the government supervision system in the process of China’s auto insurance rate marketization reform from the dimension of market operation efficiency.Through conducting the empirical study was,this paper mainly analyzes the influencing factors of the development of the auto insurance market,selects the panel data of 31 provinces,municipalities and autonomous regions in China from 2007 to 2019,and introduces economic,population and market variable models as control variables in the regression.The results show that objective factors such as economy and population has a significant impact on auto insurance consumption,which confirms the conclusions of many studies.Under the control of other factors,the institutional dummy variables have a significant positive impact on the development of the auto insurance market.The seventh chapter also conducts an empirical study on the role of the government supervision system in the reform of the auto insurance premium rate marketization from the perspective of consumer welfare.This chapter further explores the beneficial effect of government regulation on consumers in the current process of market-oriented reform of auto insurance rates.Through empirical research,it concludes that institutional dummy variables have a significant impact on consumer welfare.They can also further improve the fairness and sustainability of auto insurance operations by improving high unreasonable expenditures and increasing small auto insurance claims,highlighting the inclusive effect of auto insurance consumption.The eighth chapter summarizes the full text,and draws conclusions and put forward suggestions on how to face the market-oriented reform of auto insurance premium rates and the choice of supervision system at this stage.The possible contributions and innovations of this paper are as follows,First of all,starting from the theory of imperfect competition and asymmetric information theory,the paper combines the competition point of view of market economics and regulatory economics perspectives with reality in auto market.From a theoretical point of view,it grasps the core of the problem of the market-oriented reform of auto insurance rates and analyzes it.This paper points out that the auto insurance market price formation mechanism has the dual particularity of market attributes and insurance attributes,emphasizing the "coordination" between marketoriented price formation and government price regulation,and clarifies the promotion of China’s auto insurance premium rate market-oriented reform and the government’s regulation of industry prices.The theoretical logic of "double balance" should be sought out between them.Secondly,based on the operation practice of China’s auto insurance market,the panel data of China from 2007 to 2019 are selected to empirically study the effect of government supervision in the process of China’s auto insurance market rate reform.From the multiple perspectives of the operation efficiency and resource allocation of the auto insurance market and the consumer welfare,this paper quantitatively evaluates the positive effect of government supervision in the current process of China’s auto insurance premium rate marketization reform.Thirdly,by organically combining relevant theories with rich international and domestic practical experience,it concludes that the direction of further development of the market-oriented reform of auto insurance premium rates in China should still be the judgment of market stability under the leadership of the government.The scientific supervision of this paper provides some practical basis and new ideas,which are helpful for further in-depth research and exploration in the next step.Fourthly,the internal logic and realistic basis of auto insurance rate marketization and government supervision in many countries(regions)are compared comprehensively.In particular,to solve the disputes and confusions about the marketization of auto insurance premium rates and government supervision in theory and practice,the author has thumbed through a large number of first-hand materials to examine the emergence,evolution,status quo and trends of representative auto insurance premium rate supervision systems in the United States,Germany,and Japan,exploring the commonalities and laws of the market-oriented reform of auto insurance rates,and finally put forward specific suggestions for the design of relevant systems in China.