insurance, people no longer unfamiliar terms, and everyone’s lives, on the buy insurance to protect and to some extent have been equated. In the Automotive sector, the insurance Is undoubtedly an integral part of both the road have to pay compulsory insurance such protection, but also to maximize the reduction in personal accident protection insurance losses after the other.
However, the previous Car insurance and now has 2020 Car insurance, resulting in a change in the other poles.
2020 – the unspoken rules no longer
everything changes, from silver Bao Jianban hair (2020) 7 file in early 2020 – Bank of America CIRC office inform the Office on further strengthening the supervIsion of insurance related matters.
to extract its three pages, a large amount of the same keyword appears a few hundred words of dIsguIse modify, breaking rate, dIsguIsed breakthrough, taking the cost of data abnormalities.
can be explained by thIs document, “there Is now a lot of chaos in the Auto insurance industry, the cost of confusion, abnormal data,” and if it continues its brutal laIssez-faire development, only a consequence, the insurance Is no longer giving confidence, US insurance industry in the further opening of U.S.’s great strategy, great damage.
If you think thIs Is alarmIst, then (2019) No. 120 document from the American Insurance Association – on the Issuance of “Bank of America Insurance Regulatory CommIssion Vice Chairman Liang Tao speech points on Auto insurance work conference” the notice was we present a true state of the uS Auto insurance industry, and in which chaos.
1, Auto insurance market showed a downward trend, citing the notice available – 2019 In October, Auto insurance premiums 630.9 billion yuan, an increase of 4.87%, while premium growth but fell 5.52%. In addition, the proportion of the overall P & C insurance industry continues to occupy more than half, specifically 65.23%, but thIs proportion fell by 4.82%.
ThIs means that the Auto insurance industry, the insurance industry remains the top priority, but it Is clear that the health situationEncountered significant problems.
2, the current Auto insurance reform has achieved some success, the scope of protection to further expand payment amount has improved. Insurance rates also further improved, as of October 2019, after more than 10 million users to buy to pay high insurance business insurance purchased other vehicles.
3, however, the bubble Is still the biggest problem of Auto insurance industry can not be avoided.
The following data may exceed the very real people’s awareness, cited in the original notification, “October 2019, industry-wide operating cash flow Is negative, not only did not bring much to the insurance company profit, cash flow does not even give to. “
Also, the Auto insurance industry in chaos frequent, such as we are the most common, 4S shop to buy a new Car must be insured in the 4S shop, with a high pricing, high fees bundling new Car sales, against the interests of consumers; blind pursuit of scale, the pursuit of premium numbers, without considering the actual operating status, which Is the leading cause of Auto insurance industry cash flow negative.
Further, there Is also data fraud problem, cited in the notice from – to avoid regulation, some insurance companies at a front end delay recorded, transfer cost of sales to claims or other subjects by the cost of sales, even IOUs, not recorded etc., Will add up to true operational data.
behind seemingly healthy, it may hide a lot of crIsIs. It Is precIsely because in 2020 the US Auto insurance industry began a new round of regulation. Currently, the Car
mandatory insurance industry, Auto insurance fee cap of 25% of new Cars, used Car upper limit of 20%.
So Auto insurance began in the 4S shop mode strangled
After several years of rapid development, the US Auto insurance industry does have a more diversified development, such as telephone Auto insurance, Auto insurance network to become the new choice of more people, such as re-insurance payments, buying more and more flexible.
However! We must face the reality remains that the current Auto insurance industry point of view, Is still similar to the intermediary, not have their own channel team, all basic business by buying fromLarge intermediaries, purchased from the hands of the 4S shop. Which, 4S shop as a bigger Car retail channels, absolute firmly occupy a large share.
However, the current situation Is that the traditional development model 4S shop has been a great It challenges. No money, nowhere to make big money, these words in front of the vast majority of all brands 4S shop. Or even lose money selling Cars, the normal operation of 4S shop can only rely on the manufacturer’s rebate, and its derivative.
derivative Is contained, finance, insurance, used Car sale, staging, an important part of these spare parts. Prior to rectify the Auto insurance market, it Is precIsely one of the main sources of profit in the 4S shop model of development.
2015, consumers in the 4S shop to buy Car insurance, the insurance company Will give 18% of the 4S shop fee rebate; and Over the next few years, with Auto insurance industry continues to expand the exIsting scale, and we have said above chaos, fee rebates already up to 40% or even higher level.
In the course of our investigations, even Auto insurance industry veteran gives real case occurred in 2019. 2019 in Chengdu market, and even insurance companies in pursuit of book data, to give 65% commIssion rebate.
If the amount of commercial insurance to buy a new Car in the 4S shop of 5,000 yuan, then bring 4S shop industry average profit (calculated by 40%) Is 2,000 yuan, while 65% of cases if Chengdu calculated that thIs amount Is 3250 yuan. Do not forget, 4S stores Will charge a fee to purchase insurance consumers, that Is, from both buyers (insurance companies, consumers) two-way money.
So, that Is Why many consumers in the 4S shop to buy a new Car Will encounter the first year of mandatory insurance, full insurance reasons. Among the
2020 new round of governance, today’s rate plummeted from 40% -65% to 25%, and with the further reform of insurance, thIs data may be further reduced in the future .
at 4S shop model to double charging Car insurance as a profit point, so survivalWay Is slowly being crush.
Other traditional mode of 4S stores are slowly crush
financial loans – Installment purchase high price items, Is a mainstream market, but also change more and more popular. But essentially, it’s not because of the heat the natural result of normal market growth, but behind the capital side find points of interest which, under the push, the more push more product.
for bank Auto loans in the 4S shop, 4S shop actually profit model, and now, like Car insurance, on the one hand to charge consumers fees, on the other hand complete the processing, from the bank the financial sector get the corresponding fee rebate.
Of course, thIs Is only a few years ago mode, Auto finance in recent years Is also a change similar to Auto insurance. Bank Auto loans out of the market stage, 4S shop of mainstream financial channels become a major Automobile plant of internal financial channels.
Of course, the financial means manufacturers, regulatory channels more smoothly, which Is less unspoken rules, 4S shop from the increased charge channel Is also less, because the loan threshold Is low enough. As long as credit standards, as long as the ID Card, driver’s license two Cards, you can apply for Car loans.
Today’s 4S stores are more and more regulators
after-sales, parts, service charges also the same Is true, increasingly stringent regulatory, profit margins had less and less chaos.
Today, relatively stable profit margins can only find from the exIsting service channels. For example, the financial cost of staging GPS, such as insurance channels of renewal, other additional rIsks and other derivatives.
Written in the last:
4S shop Auto insurance industry under the traditional model, Will have to give up before many gray areas and unspoken rules. According to the latest News 2020 February 20, the U.S. Insurance Regulatory CommIssion Insurance Department of the silver Letter (2020) No. 52 document of 24 in violation of the provIsions of the latest cities to be punIshed, including Shandong Bureau 5, Qingdao Bureau of 2, 5 Henan Bureau two, four Bureau of Zhejiang, Guangxi Bureau 3, Anhui Bureau 2, a Sichuan, Shanxi 1, a Xinjiang, involving eight property insurance company: peoplePICC 7, 8 Ping An Insurance, Pacific Insurance 4, U.S. Life, the earth, the sun, Wing, North Bay Insurance each one.
everything in the 4S shop mode (vehicle sales, Auto insurance, installment finance, maintenance aftermarket) now seem to face a more transparent regulation, and thIs means in 2020– during 2020, if not more innovative profit model, brand dIsmal sales, 4S shop only had to exit.
In large national strategy to expand opening up, insurance, finance, Automobile almost the same period to usher in global multinational giants new round of challenges, 4S shop exhibited only the result, while reflecting the phenomenon Is real knockout accelerate.
The most pessimIstic scenario in 2020 Will be born out of the first Car companies out of the market, the next topic Is that they are one, two, three? It Will be the last remaining few?