With the release of solvency reports for the fourth quarter of last year by non-listed property and casualty insurers, the motor insurance operating data of relevant insurers has also been disclosed. According to incomplete statistics from the reporter, as of February 26, a total of 55 insurance companies have announced the average car premium in 2023, of which 35 insurance companies have seen a year-on-year decline in the average car premium, accounting for 64%, of which the average car premium of a single insurance company has fallen by more than 2,600 yuan.
A number of interviewed industry insiders told the reporter that the decline in the average car premium of many insurance companies last year is a substantial embodiment of the "price reduction, insurance increase, and quality improvement" of the comprehensive reform of car insurance, which is good for consumers. However, for insurance companies, the characteristics of auto insurance products determine the decline in the average car premium, which will inevitably increase the operating pressure of small and medium-sized insurance companies, and in the future, small and medium-sized insurance companies need to increase their competitiveness in the auto insurance market by improving professionalism and customer retention.
The average car premium of 55 insurance companies.
for 191824 yuan.
As the largest type of insurance in the property insurance industry, the trend and development of motor insurance have always attracted much attention. According to incomplete statistics from the reporter, as of February 26, a total of 55 insurance companies have announced the average car premium in 2023, with the lowest being 58563 yuan, up to 6300 yuan, the average car premium is about 191824 yuan.
Specifically, there are 9 insurance companies with an average car premium of less than 1,000 yuan, 30 insurance companies with an average car premium of 1,000 yuan to 2,000 yuan, 9 insurance companies with an average car premium of 2,000 yuan to 3,000 yuan, and 7 insurance companies with an average car premium of more than 3,000 yuan. In terms of trends, compared with 2022, the average car premium of 35 insurers has decreased in 2023, accounting for 64% of the total number of disclosed insurers.
Industry insiders said that the decline in average car premiums was mainly affected by the second comprehensive reform of car insurance.
In September 2020, the former China Banking and Insurance Regulatory Commission (CBIRC) issued the "Guiding Opinions on the Implementation of the Comprehensive Reform of Auto Insurance" (commonly known as the "Comprehensive Reform of Auto Insurance" in the industry), proposing that the main goal of the auto insurance reform is to "protect the rights and interests of consumers", and "price reduction, insurance increase, and quality improvement" will be the phased goal in the short term. In January 2023, the former China Banking and Insurance Regulatory Commission (CBIRC) issued the Notice on Further Expanding the Floating Scope of Autonomous Pricing Coefficients for Commercial Auto Insurance (known in the industry as the "Second Comprehensive Reform of Auto Insurance"), proposing to further expand the pricing autonomy of property insurance companies, and the floating range of independent pricing coefficients for commercial auto insurance will be changed from [0.].65，1.35] expanded to [0.]5，1.5]。
The independent pricing coefficient of commercial auto insurance refers to the coefficient that the insurance company adjusts the auto insurance premium according to the risk characteristics and insurance needs of the vehicle and its own business strategy in the calculation of commercial auto insurance premium. The lower the self-pricing factor, the lower the motor insurance premium.
Xu Jianping, vice president of Cheche Technology, told the reporter that the most intuitive impact of the adjustment of the independent pricing coefficient is the change in auto insurance premiums, which is also in line with the reform goal of "price reduction, insurance increase, and quality improvement" of auto insurance.
Shi Hui, founder of Yancomb New School, said in an interview with the reporter that after the second comprehensive reform of auto insurance expanded the floating range of independent pricing coefficients, insurance companies have reduced the average car premium on the basis of guaranteed risk consideration.
Small and medium-sized insurers. Professionalism needs to be improved.
Although large insurers have more market share, their average car premiums are not low overall. From the perspective of type, the average car premium is less than 1,000 yuan, all of which are small and medium-sized insurance companies.
In this regard, analysts said that the low average car premium of small and medium-sized insurance companies is related to the structure of auto insurance products and the fierce competition in the auto insurance market.
Shi Hui told reporters that in the premium structure of small and medium-sized insurance companies, the proportion of "three insurances" is relatively high. This means that among the customers of small and medium-sized insurance companies, the proportion of customers who only insure compulsory traffic insurance (compulsory motor vehicle traffic accident liability insurance) and three-party insurance (motor vehicle third-party liability insurance) is relatively high, which reduces the average vehicle premium.
Xu Jianping said that the Matthew effect in the property insurance market is prominent, and the market competition is fierce, and some small and medium-sized insurance companies will adjust their independent pricing coefficients to a lower level and reduce motor insurance premiums to retain customers and compete for market share.
The "Matthew effect" in the auto insurance market has been widely concerned by the market. According to the "China Insurance Industry Risk Assessment Report 2023" released by China Insurance Protection** Co., Ltd., in recent years, the overall underwriting profitability of the auto insurance industry has been mainly affected by external factors, but the concentration of premiums has continued to increase, the market share of small and medium-sized companies has shrunk, profits have continued to be concentrated in the head companies, and most small and medium-sized companies have suffered operating losses.
Shi Hui explained that since auto insurance is a standardized semi-public good, its product operation will fluctuate around breakeven in the long run. In the overall break-even situation of the market, the "Matthew effect" of the auto insurance market is more serious, and the top insurance companies occupy a high share of market profits, and the pressure on the profitability of small and medium-sized insurance companies will increase, and most small and medium-sized insurance companies are in the predicament of losses, which is determined by the characteristics of auto insurance products themselves.
Shi Hui further said that for small and medium-sized enterprises, operating auto insurance needs to improve professionalism and customer retention. Auto insurance is a standardized insurance product based on refined operation under a certain scale, which has high requirements for the professionalism and management ability of insurance companies, and has very strict requirements for the risk pricing and underwriting and claim control of insurance companies' products, and at the same time, it must also achieve large-scale operation. Therefore, for small and medium-sized insurance companies, it is necessary to improve their professionalism and refinement, improve their customer retention and control, obtain their own customer base, and avoid adding too many high-risk customers when acquiring customers, which makes it more and more difficult to operate.
Reporter Su Xianggao and trainee reporter Yang Xiaohan.