"High limit low limit" new car insurance price war looming

Recently, China insurance regulatory Commission issued the Declaration on strengthening the management of motor vehicle insurance premium rate notice (hereinafter referred to as the notice). For the majority of owners, end of business insurance can play no more than 70 percent of the time, you will have more choices, more concessions.

new regulations or introduced in July

the notice specified that the car insurance rate will be established from three aspects of "market-oriented pricing mechanism": first, China's insurance industry associations at least once every two years a business auto insurance industry refer to the pure loss rate is measured, for insurance company reference and use. Second, commercial auto insurance rates float factor on motor vehicles and drivers ' risks, such as rational, are linked to the level of implementation rates and the level of risk. Third rate "limit high limit low" regulation, requiring insurance companies to develop commercial auto insurance rates, additional charges are scheduled in principle no more than 35%.

"the layman's terms, is to develop" reserve price "insurance companies according to the management, plus a predetermined profit indicators attach rates. "The insurance industry association of Hubei Province who introduced yesterday, because this notice last week announced, the local has not yet received notification of floating rates when opening," but not for too long, has floating rates in the last year, and so do a lot of work. ”

introduces the local insurance companies, had heard a News Corporation, CIRC request at the end of 5 escalation each company's own rates, July 1 is expected to be formally introduced.

the price war?

"after the implementation of new rules, rate will be different for different models. "Locally relevant parties for an insurance company, in the past, auto insurance rate is based on the purchase price, but also more than 200,000 cars, some import cars repair costs are higher than domestic. In future, this coefficient of model rates may rise.

Similarly, if a model is often an accident, has often been recalled, rate coefficient will be higher. "This will force car manufacturers to improve the quality of production, and reduce maintenance costs. "He said that future owners may" buy car insurance ".

according to the China insurance regulatory Commission stipulates that domestic commercial auto insurance in accordance with the provisions of insurance benchmark rate up to 70 percent off.

introduced, according to several insurance industry veteran, if rates "lower height limits on the open-ended", in fact, that is, limited companies the highest premium in the future  , in the case of competition, various insurance companies could drop even lower premiums, that is play great discounts.

one person said the local insurance sector, can be predicted is that car insurance rate reform will intensify competition in the market, coupled with more and more insurance companies, does not rule out some insurance companies by lowering market.

terms of the King to be abolished

"high low pay" or "without accountability is not lost", "regardless of the franchise" was supposed to be three of the auto insurance sector "overlord". The notice clearly, insurance companies and policy holders should consult in accordance with the fair-market value determine the actual value of the insured vehicle, the insurance company shall consult with the applicant agreed insurance amount, meaning "high definition low pay" articles from death.

reporter learned that, at present, the society is developing in motor vehicle reference a depreciation coefficient. From now on, car insurance rate will be calculated based on the vehicle when the market price.

in order to solve the problem their owners to "not accountability at deductibles" this issue last year, regulators in the auto insurance field "subrogation claim" mechanism: in the case of liability does not fulfil the full responsibility, no responsibility can be asked without accountability are underwriting insurance company to compensate, the insurance company replaced but no responsibility fully recovered.

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