The Research On The Impact Of The Reform Of Auto Insurance Rate On The Performance Of Property Insurance Companies

With the rapid development of insurance market,the commercial auto insurance market is also developing rapidly,and the market demand has risen significantly.However,there are still many problems in the commercial auto insurance market.On February 3,2015,China Insurance Regulatory Commission issued the guiding opinions on the reform of the commercial auto insurance rates,and the reform of commercial auto insurance rates has entered a substantive operation stage.The reform was carried out step by step.First,six regions including Shandong Province and Hebei Province were selected for pilot projects.After achieving certain results,the reform is relatively mature in June 2016.Ningbo and other 18 regions are carrying out the reform of commercial auto insurance in an orderly manner.It means that the reform of commercial auto insurance rates has been rolled out,and in July 2017,it continued to expand the pricing autonomy of property insurance companies and lowered the limit of the floating coefficient of commercial auto insurance rates.Seven places including Shanxi Province adjusted the range of independent pricing of commercial auto insurance again and adjusted the limit of the rate discount coefficient range twice.It is with so many reform measures that property and casualty insurance companies are facing a big test in their performance and management level.How to deal with the impact of the current commercial auto insurance rate reform on the property insurance companies to leverage their strengths,is a requirement for all property insurance companies.This paper takes the national property insurance companies as the research object,and conducts research on the basis of premium scale and market share.Through the classification of financial indicators and non-financial indicators,this paper mainly studies the impact of commercial auto insurance rate reform on different types of auto insurance from seven aspects,including profitability,business growth ability,solvency,asset management ability,innovation ability,market share,and customer satisfaction.It is found that the reform of commercial auto insurance rates has improved the customer service innovation capabilities of various property insurance companies and the development capabilities of non-auto insurance products,but the profits of small and medium-sized property insurance companies have declined significantly and some property insurance companies have on the verge of profit and loss.In order to quantify the impact of the reform of commercial auto insurance rates on the performance of property insurance companies,the paper takes the top 11 property insurance companies in auto insurance premium income as samples and builds a model to test the impact of the reform of commercial auto insurance rates on property insurance companies.Profit is the dependent variable,and the overall premium income,the proportion of auto insurance premiums,the loss ratio of auto insurance,the ratio of the fixed asset,the ratio if expense,the market share of auto insurance and the premium income of the auto insurance market are used as control variables,and the dummy variable of commercial auto insurance rate reform is set.For the explanatory variable,the degree to which the observation explains the dependent variable.The empirical results show that the commercial auto insurance rate reform has a negative impact on the performance level of property insurance companies.At the same time,in order to distinguish the impact of commercial auto insurance rate reform on the performance level of property insurance companies of different sizes,heterogeneity analysis is carried out and the results show that the impact of commercial auto insurance rates on the performance level of property insurance companies is mainly reflected in small and medium-sized property insurance companies,which also reflects that small and medium-sized property insurance companies are more affected by the reform of commercial auto insurance rates.It needs to strengthen its own auto insurance management capabilities.Based on statistical analysis and model results,this paper provides ideas for how property insurance companies can improve their performance in the reform of commercial auto insurance rates.and suggestions.The main contributions of this paper are as follows: First,this paper shifts the research focus to the performance of property insurance companies.From another dimension of insurance companies,the evaluation of property and casualty insurance companies after the reform of commercial auto insurance rates is more comprehensive and objective.At the same time,through empirical analysis of the model,in order to quantify the impact of commercial auto insurance rate reform on the performance of property insurance companies,it is of practical significance to put forward policy recommendations and countermeasures.Second,the research scope of performance,from the reform of commercial auto insurance rates to the performance level of property insurance companies,enriches the research and analysis of the factors affecting the performance of property insurance companies.