Asian News - China: Motor insurance pricing trial begins
Source: Asia Insurance Review | Jul 2015
Regulatory restrictions on car insurance premiums have been relaxed starting on 1 June in six Chinese provinces and cities, under which insurers will no longer follow pricing set by the authorities and can grant preferential rates to low-risk car owners.
The six places are Chongqing, Guangxi, Heilongjiang, Shaanxi, Shandong and Qingdao, announced the CIRC.
Mr Liu Feng, Director of the Property Insurance Department at the CIRC, said at a recent auto insurance forum that the commercial auto insurance reform will focus on establishing models for the industry. He said that the reforms will lead to market segmentation and competition based on differentiation.
Industry sources said that in the initial stages of the reform process, insurance companies are likely to use criteria proposed by the Insurance Association of China. Each insurer, though, is likely to have its own pricing.