Research On The Impact Of Market-oriented Reform Of Commercial Vehicle Insurance Rate On Property Insurance Companies

In recent years,with the rapid growth of China's social economy,Infrastructure construction is improving day by day.The automobile industry has also developed by leaps and bounds.Automobile has gradually become an important way for people to travel.With the increasingly close connection between automobile and life,people's understanding and demand for commercial automobile insurance have also undergone great changes.However,the terms and rates of auto insurance have not been materially adjusted,which cannot conform to the market at all.The lack of adjustment mechanism of auto insurance terms and rates leads to the inability of the industry to make self-adjustment and repair.The original commercial auto insurance model cannot meet the market demand.In this context,CIRC officially launched the reform of commercial automobile insurance in 2015.Shandong province,as one of the first regions to implement the auto insurance fee reform,has fully implemented the auto insurance fee reform since June 2015.Three years have passed since then,and the sample data of a long period of time can be obtained.Compared with Shandong auto insurance market and property insurance companies related indicators statistics before and after the reform of auto insurance premium rate,we can find out something.For the structure of the auto insurance market in Shandong province,after the reform of auto insurance premium rate,the decline trend of the concentration of the auto insurance market in Shandong province has not been impacted,but compared with large property insurance companies,small and medium-sized property insurance companies will face more severe challenges.For property insurance companies in Shandong province,due to the influence of multiple factors,the growth rate of premium income of property insurance companies in the reform of automobile insurance rate has slowed down,and the compensation expenditure has increased year by year.Especially,the comprehensive loss rate of small and medium-sized property insurance companies has significantly increased.In addition,in terms of profitability,medium-sized property insurance companies will face greater tests.For further analysis of commercial car insurance rate marketization reform's influence on the general insurance company in Shandong province,this article USES 30 general insurance company in Shandong province in 2012-2017 panel data,construct econometric model respectively,using the generalized least squares method general insurance company in Shandong province analyzed the influence factors of premiums and compensation expenses,especially the car insurance rate reform the virtual variables of premium income and the impact of compensation expenses.The empirical analysis has the following conclusions.For the premium income of property insurance companies in Shandong province,the dummy variable of core variable auto insurance premium rate reform has a promoting effect on the premium income of property insurance companies,but the promoting effect is not significant due to its different effects on the single average premium and the insured amount.Promote the premium income of property insurance companies.The proportion of intermediary business is negatively correlated with premium income,which may be caused by the fact that the greater the degree of reliance on intermediary business,the weaker bargaining power of the property insurance company relative to the intermediary organization,and the lower the premium income.The effect of comprehensive loss rate on premium income is not significant.The dummy variable of auto insurance premium rate reform has significantly promoted the compensation expenditure of property insurance companies in Shandong province,indicating that one of the major goals of this reform--to protect the rights and interests of consumers,to solve the"high insurance and low compensation,no liability and no compensation" and other industrial chaos has been achieved to a certain extent.Premium income is positively correlated with compensation expenditure,but the growth rate of compensation expenditure is higher than that of premium income.The number of accidents and the size of the company are positively correlated with the compensation expenditure,but the influence of the size of the company is not significant.