90% of non-listed insurance company car insurance losses

As of April 29, a total of 41 unlisted property insurers with auto insurance business announced annual reports, of which 37 auto insurance business losses, that is, 90% of the property insurance company's auto insurance business suffered a loss.

As early as the listed insurance companies announced their annual reports, the loss of the first-stage insurance of CPIC Insurance underwriting for six years attracted the attention of the market. Even the comprehensive cost rate of only 95.3%, 96.5% of Ping An Property and Casualty Insurance, and PICC P&C Insurance also indicated that the cost rate of auto insurance climbed. , Profit "stressed."

“The rising prices of auto parts, labor costs, human injury medical costs, and rising channel costs under intense competition are the main reasons for the increase in the overall cost ratio of auto insurance.” PICC P&C related sources told reporters.

For property insurance companies, the auto insurance business accounts for 70% of the property insurance premium income, which is a hot spot for property and casualty companies. However, the auto insurance business suffers from a deficit, the profitability of insurer companies is difficult, and how auto insurance business breaks through and the marketization rate will become Whether it is a good medicine for the auto insurance business is still variable.

Rising overall cost rate is an industry trend

As of April 29, a total of 41 unlisted property insurers with auto insurance business published annual reports. Among them, only auto insurance, land insurance, Yong'an Property Insurance, and Hua'an Property Insurance's auto insurance business were profitable, and Sunny Agriculture Commercial Auto Insurance achieved profitability. 37 The property insurance company’s auto insurance business suffered a general loss. Among the auto insurance loss-making enterprises, there are 20 companies that have lost more than 100 million yuan, 6 have exceeded 200 million yuan, and Yongcheng P&C Insurance and AXA Tianpin have taken up 387 million yuan and 306 million yuan in auto insurance insured losses respectively. High position.

“The cost of claims after getting out of danger is getting higher and higher. The price of automobile spare parts has risen for a few years and the labor cost has doubled.” A property insurance company official told reporters.

“Now the auto insurance is not profitable, and the overall cost ratio remains high, mainly because the market cost is too high. Companies are constantly increasing the market cost allocation for acquiring business, including handling fees, advertising fees, promotional fees, etc. This intermediate fee is Big head, some auto dealers rely on high areas, the handling fee is as high as 30 or more points." The above-mentioned person of PICC P&C said to reporters.

China Taiping vice chairman and general manager Li Jinfu said at the Taiping results conference that the increase in the overall cost ratio is an industry trend. Only some large property and casualty insurance companies have scale advantages to improve. For Taiping P&C, a medium-sized P&C insurer, the combined cost rate for the past few years was about 99.5% to 99.8%, which is very rare. The combined cost rates of other medium-sized insurers are mostly higher than 100%.

CPIC also explained to foreign investors that the property insurer's losses are mainly due to factors such as increased competition, corporate property insurance, liability insurance, etc. The overall underwriting profitability space continues to shrink; in addition, some sub-divided business types underwriting profitability, human injury standards Improvements, adjustments made by the company to the reserve assessment, etc. will all lead to an increase in the overall cost ratio.

With the rising medical expenses and the increase of personal injury compensation standards, the insurance compensation for the number of casualties in the entire automobile insurance accounted for a higher proportion of the total amount of compensation. It has also become one of the important factors affecting the insurance company’s auto insurance earnings. “Not only that, but there are specialized 'human wounded cattle', and after customers are hospitalized in traffic accidents, there will be a lot of similar 'yellow cattle' encircling to seek cooperation and complete claims, and in the assessment of disabilities, they will use their hands The level of disability of the injured has been increased, helping the injured to increase the amount of compensation to a level inconsistent with the facts, and to extract huge profits from it.” The above-mentioned property insurance companies said that not only the cost of various aspects of the auto insurance business has been continuously raised, but also the difficulty of risk control has increased. The bigger.