The Impact Of A New Round's Commercial Vehicle Insurance Reform On Operating Beneficial Result For The Property Insurance Companies

In February 2015,the China Insurance Regulatory Commission officially promulgated the "Opinions of the China Insurance Regulatory Commission on Deepening the Reform of the Commercial Vehicle Insurance Clause Rate Management System"(Bao Jian Fa [2015] No.18Document),which opened a new round of commercial auto insurance market reform.The prelude.The new round of commercial auto insurance marketization reform is based on the principle of “adhering to the direction of marketization,protecting the legitimate rights and interests of consumers and actively and steadily promoting reforms”.The reform first establishes the sound scientific management and commercial auto insurance clause rates in line with Chinese national conditions.The objective of the management system requires the China Insurance Industry Association to promote the accumulation and actuarial work of industry data,and gradually improve the accuracy and adaptability of the pure risk premiums for commercial auto insurance.In this way,property insurance companies will have greater commercial auto insurance premiums.The rate determines autonomy and ultimately forms a highly market-oriented commercial auto insurance rate formation mechanism.The core of the new round of auto insurance marketization reform is to gradually transform the commercial auto insurance clauses and rates by the China Insurance Regulatory Commission,and give the property andcasualty insurance companies the right to formulate commercial auto insurance terms and rates within a certain scope.The purpose of the new round of auto insurance market reform is to improve the innovation ability and promote the differentiation of commercial auto insurance products,and ultimately improve the management ability and risk management and control capabilities of property insurance companies on insurance products for the healthy sustainable development.This paper firstly summarizes the research literature on the marketization reform of foreign auto insurance and experience,the motives of China's auto insurance market reform and the impact of the new round of auto insurance reform.Then it expounds a new round of auto insurance reform.The main content explains the changes in commercial auto insurance clauses,insurance rates and regulatory policies under the new round of market-oriented reforms.These changes will directly affect the actual operation and management of property insurance companies,including the reform of property insurance companies.Changes in competition models,marketing channels,product development,customer selection,infrastructure,and internal management.This paper selects six indicators of premium income,underwriting profit,market size,loss ratio,comprehensive expense ratio and comprehensive cost rate of auto insurance business before and after the reform of 33 representative property insurance companies from 2012 to 2017,usingthe fixed effect model for the new one.An empirical analysis of the impact of market-oriented reform on the operating efficiency of property insurance companies.The results show that the new round of automobile commercial insurance marketization reform has a significant impact on the overall operating efficiency of China's property insurance companies,significantly increasing the premium income of property insurance companies,but also increasing the operating costs of property insurance companies,and ultimately This has led to the deterioration of the profitability of some small and medium property insurance companies.The research results also show that the impact of the new round of reform on property insurance companies of different scales is different.While the operating efficiency of large property insurance companies is improving,the operating benefits of small and medium-sized property insurance companies are decreasing.Finally,this paper aims at small and medium-sized property insurance companies that have been negatively affected by the new round of reforms,and proposes differentiated products to develop market share;improve service quality and optimize operational processes;keep up with the trend of the times and broaden sales channels.