Chaos in auto insurance market needs to be rectified urgently.
Beijing, June 6 (Reporter Qu) The China Insurance Regulatory Commission recently issued the Notice on Rectifying the Chaos in the Motor Vehicle Insurance Market (Draft for Comment), requiring property insurance institutions not to ignore internal control and compliance and risk management and control, and not to blindly fight for scale and share, which will focus on cracking down on illegal acts such as taking fees and conveying illegitimate interests in the auto insurance market and promoting the sustained and healthy development of the industry.
In recent years, China's auto insurance coverage has been expanding, and the insurance coverage rate and insurance liability limit have been significantly improved, but the long-standing vicious price competition and other issues have not been fundamentally solved. Especially after the market-oriented reform of auto insurance rate, the company gained more initiative in auto insurance pricing. Some companies pull orders with ultra-low premiums, which not only affects the operating efficiency of the auto insurance market, but also appears the phenomenon of delaying compensation and regretting compensation behind the seemingly affordable price, which ultimately damages the legitimate rights and interests of consumers. To this end, the exposure draft is clear that property insurance companies should not blindly fight for scale and grab shares; Not divorced from the company's development foundation and market affordability, giving unrealistic premium growth tasks to branches; Shall not deviate from the actuarial pricing basis and sell auto insurance products at a price lower than the cost; It is not allowed to give or promise to give benefits to the applicant and the insured other than those stipulated in the insurance contract by returning or giving cash, prepaid cards, securities, insurance products and shopping vouchers. And unfair competition.
Cost control is also the primary task of this supervision. Property insurance companies shall not collect handling fees through direct business or false intermediary business; It is not allowed to charge fees by falsely listing conference fees, publicity fees, advertising fees, employee performance pay, claims fees, etc.
The CIRC will also crack down on property insurance companies to transfer illegitimate interests under various pretexts. Property insurance companies are not allowed to intentionally expand the loss of insurance accidents or increase the cost of insurance claims by inflating spare parts items, fictional working hours items, and raising working hours pricing standards, so as to transfer illegitimate interests; It is not allowed to transfer illegitimate interests to other institutions or individuals by paying business deposit or underwriting profit sharing.
The notice also requires property insurance companies to withdraw the outstanding claims reserve in full and on time in strict accordance with relevant regulations, and may not adjust the outstanding claims reserve in violation of regulations to adjust the payout ratio data between different periods, different regions, different branches and different types of insurance, resulting in the financial data of auto insurance business. Unreal; The legitimate rights and interests of insurance consumers shall not be harmed by delaying compensation, regretting compensation or unreasonably refusing compensation.
The CIRC said that for serious violations of laws and regulations, measures such as restricting the business scope of insurance institutions, revoking the business license of insurance institutions and revoking the qualifications of senior executives will be taken according to law. Insiders pointed out that the rectification began at the beginning of the second reform of commercial auto insurance rates, and it was a combination of reforms and obstacles.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.