| The vehicle insurance rate for market-oriented, means that the vehicle insurance price is determined by supply-demand relationship of the insurance market, which plays a fundamental role in the allocation of resources. If the insurance companies use the unified vehicle insurance terms and rates developed by the regulators, it means a non-market behavior. To a certain extent, it is not only lack of efficiency, insensitive to reflect supply-demand conditions in the insurance market, but also difficult to reflect risk differences. The strict rate regulation made the insurance companies lack of not only the external pressure of market competition, but also the internal driving force for reform and innovation.Competition in the vehicle insurance rates is a principal method for insurance companies. The market-oriented reform of vehicle insurance rate is to introduce competition mechanism, which plays a basic role in the vehicle insurance resource allocation. China has Experienced a number of market-oriented reforms of vehicle insurance rate. Once strict rate control loose, the market tends to fall into the irrational price war and regulators has to involve in this disorderly competition, which has a decisive and ruling position in terms and rates at last. And the process of market-oriented temporarily goes backwards or stop cold. Looking at the other countries’market-oriented reforms of vehicle insurance rates, most of them experienced three stages:the first stage is usually a disorderly price competition, which eventually leads the insurance companies difficult to get profits, even have a loss; The second stage means strict control, the vehicle insurance association come into being and the insurance regulators establish the unified vehicle insurance terms and rates:The third stage is the market-oriented rate, when insurance companies’internal factors and the external conditions for the insurance market are ripe enough, the marketing mechanism of rates and terms will be appear. Therefore, our the temporary retrogression and stagnation of vehicle insurance rates for market-oriented are normal, the key is whether each reform can have some breakthroughs, and our process of insurance rates for market-oriented needs step-by-step.China’s previous market-oriented reforms of vehicle insurance rate has made some certain achievements, but there are some problems that still need to be solved for promoting the further reform:The types of vehicle insurance information platform’s database may have imperfections; Irrational price war made the market chaotic; single sales channel, high costs, and the decline of the rates are difficult to benefit the consumers; High claim ratio and operating costs; In the oligopoly market structure, many small and medium-sized property insurance companies have to follow the big companies to set down the vehicle insurance rates and terms. In a new round of the market-oriented reform of vehicle Insurance rate, we must solve these probiems. Firstly, establishing the information platform of national network shared as soon as possible, which can provide all kinds of insurance companies’information of compulsory and commercial insurances; Secondly, Innovating merging and regulating the existed vehicle insurance sales channels, Establishing direct sales team with a high capacity, Improving the construction of new sales channels such as the telephone network; Thirdly, breaking the oligopoly market structure, etc.In the above problems, breaking the oligopoly market structure is very important which has affected the formation of vehicle insurance rate for market-oriented. In2011, the CR3have reached68.64%and the average market share of the remaining40Property Insurance Company is less than1%. With this market structure, small and medium-sized insurance companies determine their own rates just according to the three insurance companies. In this abnormal condition, the insurance rate can not fully reflect the true supply-demand relationship of the insurance market. Monopoly means inefficiency and the waste of resources, but competition can bring the power of vitality and innovation for the whole industry. So the formal competition is not enough and Chinese vehicle insurance market needs a rapid development. The market competition mechanism should be improved and enriched, and the development of small and medium-sized insurance companies should be encouraged and supported. Only in this way, the price formation mechanism can be completely determined by the market, rather than in accordance with the will of the individual companies, and the price can truly reflect the vehicle insurance market supply-demand relationship. On the contrary, the price is inefficient monopolistic data, which against the original intention of the market-oriented reform of vehicle insurance rate.Therefore, promoting the development of small and medium-sized insurance companies and continuously improving the structure of the vehicle insurance market is also the important content of the market-oriented reform of vehicle insurance rate. The small and medium-sized insurance companies should integrate and innovative sales channels; identify market segments; implement the differences in management; have an accurate market positioning with the professional management; gradually improve the information database of the vehicle insurance, etc. At the same time, the regulators should provide a certain amount of policy supports, such as establishing the different regulatory system; encouraging and supporting small and medium-sized insurance companies to identify market segments, and forming the manage trai; gradually loosing conditions and allowing small and medium-sized insurance companies independently formulate their insurance rates and terms, etc.The main contributions of this paper lies in:putting the previous market-oriented reform of vehicle insurance rate in order, making a summary of the achievements and problems of the previous reforms and giving some suggestions for promoting market-oriented reform of vehicle insurance rate. Highlighting the influence of the oligopoly structure of the vehicle insurance market which make a severe affect on market-oriented reform of vehicle insurance rate and putting forward the strategy of small and medium-sized insurance companies for coping with the market-oriented reform of vehicle insurance rate. By promoting the healthy development of small and medium-sized insurance companies and improving the structure of the vehicle insurance market, pushing forwatd the success of market-oriented reform of vehicle insurance rate.The shortcomings of this paper lies in:Market-oriented reform of vehicle insurance rate is a complicated system and characteristic of practice. With the continuous combination between theory and practice, reality and development, the reform has undergone a number of times for decades, the issues and reasons involved are complex. Due to my limited ability of personal research, there are inevitably some omissions and a lack of deeper thought. The author sincerely hope teachers forgive, and be glad get some advices from teachers and classmates, thank you!... |
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