excerpts from the magazine article “status quo development of U.S.’s Automobile insurance, problems and countermeasures,” the original publIshed in the “Modern Business Trade Industry” (national unity ISSN: CN42-1687 / T; International Standard Serial Number: ISSN 1672-3198) 2019 29. [ThIs article Is the full text]
Author: Wang Xinjie, female, Chaoyang of Liaoning people, Dongbei University of Finance and Economics, Master, research direction: Finance (Securities and Futures).
Abstract: The present situation Car insurance development, starting with the introduction theoretical concepts related Automobile insurance in U.S. start to lay the theoretical foundation for the following content of the paper; then the development of U.S.’s Automobile insurance the situation Is analyzed, based on knowledge of the status quo, identify potential problems in its development process; followed by the corresponding developmental strategies and solutions based on real conditions; Finally, the future development trend of U.S.’s Automobile insurance were dIscussed.
Keywords: Car insurance; insurance market; insurance claims
First, an overview of Auto insurance
(a) Car insurance meaning
Car insurance, referred to as Auto insurance, it refers to personal injury motor vehicle due to natural dIsasters or accidents caused by or liable for the loss of a commercial property insurance, Car insurance Is property insurance major insurance.
As can be seen from the above definition Car insurance, Car insurance and Car insurance object related to economic responsibility, so Car insurance belongs to both property insurance and liability insurance belong. With the continuous development of the Automobile insurance industry, the scope of the subject matter insured Is also expanding, from the Car just started gradually developed to all motor vehicles. Today, most countries in the world still using the original Auto insurance thIs title, but we have to change it to international motor vehicle insurance, motor vehicle insurance and show that Car insurance Is included. The role of
(b) Automobile insurance
1. stable social order
On the one hand, effectively solve the problem of Auto insurance for third party liability compensation capability of the motor vehicle in a road accident may incur, personal conflicts and help alleviate social conflicts and the promotion of social harmony and stable development. On the other hand, if the insured vehicle suffered a natural dIsaster or an occasional accident, damage resulting losses ranging from business property, while in production to a standstill, dIsruption of normal economic order, resulting in a serious impact on economic development. After buying Car insurance, you can use the insurance to raIse funds for compensation, financial compensation, the affected units or individuals can make timely relief, benefit to resume production, promote stability and people’s lives.
2. Expanding demand for Automobiles
With the emergence and development of Automobile insurance, and gradually ease the businesses and individuals may use in the Automotive process the emergence of concerns about the rIsk of loss, improve the requirements of the Car, thereby promoting the continuous development of the Automotive industry, but also conducive to U.S.’s sustained economic growth.
3. Ensure the smooth flow of road safety
In order to reduce the frequency of accidents, the insurance company Will cooperate with relevant departments to coordinate the traffic police and other efforts improve prevention, strict management of people and vehicles, to driving under the influence, driving without a valid license, without the necessary repairs results in additional losses and the insured person’s behavior as intentional exclusion, and adjusted rates, the implementation of safety award manner to direct attention to the protection of safety, and thus act as a “gatekeeper” role in the elimination of road traffic accident rIsks in the insurance angle.
4. Promote the safety performance of vehicles
Car insurance the insurer from benefit themselves and society, and the data collated process, in conjunction with the Auto manufacturers, maintenance companies and other related industries to contact, the reasons for the motor vehicle accident in-depth analysIs, research and application security design of new technology to effectively enhance overall safety performance of vehicles.
Second, Auto insurance development of U.S.’s current situation
Now, the invention and development of the Car gradually make people’s lives changed dramatically, convenient transportation improving people’s travelWays to make people’s lives continues to increase. Car not only bring people to a wealth of material, it also brings to the spiritual needs of the people, promote people’s spiritual civilization, enrich people’s lives.
and trends in many Asian countries Is the same as in the US non-life insurance market, the market position and gradually increase Car insurance, currently accounts for about 70% of the market share, rapid Car sales growth Is the main driving force – the growing number of household income and household wealth increased so buy a Car rose sharply, buyers are mostly those living in large cities. Even if the number of Cars on the roads Is increasing, but from a national perspective, the number of Car ownership ratio Is still relatively small. So, before U.S.’s Automobile industry market Is not saturated, it Is still very broad prospects for development, Is also a great room for growth. As a result, U.S.’s Auto insurance industry also has plenty of room for development. Prospective Industry Research Institute released the “US Auto insurance industry Strategic Planning Market Outlook and Investment AnalysIs Report” shows that Car insurance market share of each insurance company has always been contested. Since entering the 21st century, U.S.’s Auto industry development momentum Is good, naturally the Car insurance market has also had a favorable impact. However, the current master data showed that although U.S.’s Car sales and regIstrations in the rapid growth, but U.S.’s Auto insurance rates are still at a low level compared with other countries, but it also shows that U.S.’s Automobile sales market and there Is a big market potential Auto insurance market.
Third, U.S.’s Automobile insurance problems
(a) insurance awareness and insure psychological problems
on U.S.’s current Auto insurance situation, the national insurance awareness Is relatively shallow, motor vehicle insurance rate of long-term downturn trend. Because relatively few types of Car insurance, insurance companies lower service quality, promote small influence on Car insurance, Car insurance, people who know less well understood factors seriously affect people’s consciousness insured and insured psychology. Especially in rural areas, about 40% of the vehicle Is not insured any Car insurance coverage, coupled with the poor state of rural roads, traffic accidents have occurred, once the accident, dIsaster once again because the light caused by poverty, serious cases are bankrupt.
(b) motor insurance business channel complex, high transaction costs
Is now our Automobile insurance industry chain mainly includes the following aspects: property insurance companies, Auto insurance user, upstream channels Automobile manufacturers and finance companies, downstream channels of professional agents and industry service providers and others.
supply Auto insurance insurance company whose main source of business Is directly under the exhibition industry, accounting for about 50%, most of the remaining are derived from the insurance intermediary, divided into professional and industry dIstribution facilities and dIstribution mechanIsm. Here the main dIstribution agencies and industry analysIs of the impact of the current dIstribution agencies and industry consIsts mainly 4S shops and repair shops, some 4S shops charge high commIssions to insurance companies, and even once as high as 30% -50%. In addition, insurance companies tend to protect more directly under the exhibition industry, many fee subsidies, thus leading insurance intermediary of its dIscontent rIsing, but the insurance company has said he expects large businesses from the insurance. So insurance companies and intermediaries has been unable to form a reasonable mutual cooperation and coordination, a direct result of confusion channels, imperfect cooperation and management, higher transaction costs and other status quo.
(c) Auto insurance claims loophole big problem payout rate of
higher premiums, higher claims Is U.S.’s Automobile insurance industry one of the features. The loss ratio Is too high there are four main reasons: (1) the insurance company’s business staff strict, customer requirements are too lax underwriting conditions. (2) supervIsion system Is not perfect, the lack of management in terms of the damage, pricing, etc., resulting in high cost of the insurance payment. (3) intense competition has led to high loss ratio attract policyholders. (4) insurance fraud and fraud, increase the compensation cost. Issue
(d) insurance regulation
in May 2014, the United States CIRC Issued the “Notice on Further Improving the Work of Auto insurance fraud . ” ThIs notification clearly shows that the current proportion of Auto insurance business property insurance business has occupied 70%, yet there has been bad phenomenon: an increasing number of criminal activities occur in the field of Automobile insurance, and gradually showing a gang , professional and occupational and other characterIstics, has become the focus of thIs criminal industryOccurring in the region. Because of thIs vicious incident after another, resulting in a significant impact on the insurance company’s normal business activities and financial markets. Faced with thIs grim situation, U.S.’s Automobile insurance regulatory authorities should take effective measures, while the Insurance Regulatory Bureau, the American Insurance Association, the American Insurance Association, all property insurance companies should pay more attention to the occurrence of thIs phenomenon, fully aware of the anti-Auto insurance fraud importance of the work. Lack of
(e) the insurance industry related personnel
personnel engaged in Car insurance services, not only need to have the relevant insurance knowledge, but need to have a Car technical expertIse, familiar with knowledge in the field of vehicle inspection, maintenance, etc., more importantly, have a good quality. So the higher demand for Car insurance personnel, preferably compound talents. But now it Is the presentation of the relative lack of talent of Car insurance, which brought a series of problems. For example, insurance product innovation difficult, does not improve the quality of insurance services, insurance assessment randomness larger, more loopholes in insurance claims and so on.
Fourth, the Insurance in the development of U.S. Automobile
(a) strengthen the insurance education and advocacy on national
in order to improve people’s awareness of insurance and insurance psychological need to take fundamental way to solve the problem of people rIsk and insurance awareness Is seriously lagging behind. Therefore, the insurance company should step up publicity efforts for Car insurance, so buyers need to come to realize the importance of Car insurance as protection. Can take to maintain close contact and communication with the News media and other areas of information dIssemination, effective advocacy and education insurance-related knowledge, passion and purpose Is to increase the insurance rIsk awareness of consumers. Progressive introduction of Auto insurance claims socialization and specialization, on the one hand can effectively reduce the unreasonable compensation, on the other hand also give the customer to create a fair, good, high-quality services, to enhance people’s confidence in the Car insurance, thus raIse people’s awareness of insurance.
(b) expand sales channels, improve claims loopholes, reduce the loss ratio
currently rely mainly on Car insurance 4S shops, Auto dealers as 80% of the sales agents and industry, insurance companies, Auto insurance businessThey are derived from the Car dealership agents. Therefore, most of the insurance companies in order to compete for Auto dealers, the measures taken have mostly increased transaction costs, which increases the cost of Auto insurance agency. So, Car insurance Auto insurance company should broaden sales channels, the use of online insurance, telemarketing, banking and other channels to Carry Auto insurance agency business, reduce agency costs, or reduce Auto insurance rates, aimed at improving the insurance company’s operating profit. Currently, riding on “Internet +” favorable trends, using the Internet to Carry out insurance business Is a new channel in the future development of the insurance market. In addition, the bank’s outlets across the country, from the bank insurance agency business buyers Is not only convenient, but also save agency fees, while banks may also Carry out withholding Auto insurance business.
(c) to strengthen insurance regulation and industry self-regulation
1. continue to improve the relevant Automobile insurance laws and regulations
first of all, we should strengthen and improve laws and regulations on construction deficiencies and defects of the exIsting “Insurance law” of our country; secondly, should strengthen the legal and efficiency efforts in the implementation and monitoring process, improve safety companies in prevention, the ability to dIspute aspects of claims resolved; and finally, the introduction of the national macro-management of Car insurance claims, to prevent Car insurance claims fraud system, give full play to the macro-management and market competition effect, regulate the insurance market, enhance competitive Car insurance, thus the benefit of the insured and the insurer.
2. The establIshment of the insurance regulatory authorities as soon as possible the integrity of the system
Car insurance Is a kind of contract, but also a system. Operation and fulfillment of the contract system must be based on utmost good faith-based. Therefore, we should continue to strengthen the social credit system, the integration of the integrity of resources of various departments, form a network credit system, not only the integrity of information exchange and sharing, but also to the public, increase the transparency of the performance of the regulatory authorities, establIsh and update dynamic management mechanIsm.
(iv) accelerate the training of professional Auto insurance personnel
1. strengthen the professional education of college students Car insurance
have professional colleges Auto can rely on an exIsting vehicle EngineeringAutomotive service engineering, transportation and other related professionals, to cultivate a professional Auto insurance personnel; university has insurance professional can set up Auto insurance direction of undergraduate education, with school characterIstics should highlight the professional features of the Car, for the Car insurance companies and Car insurance agency training professionals.
2. Strengthen in-service education for Car insurance practitioners
Auto insurance company should strengthen the training of Auto insurance and claims services, in-depth Research market conditions, the development of new products, new services, improve the quality of employees, enhance their professional skills. Today, U.S. has establIshed a Car insurance agents, Car insurance broker, implementation of Auto insurance assessor qualification system, the certification system only requires access to assessment, the post-admIssion but also to regular training, job qualification Is qualified .
From the development process of U.S.’s Automobile insurance industry point of view, economic growth, technological progress, and gradually go Car into millions of households, as Car insurance Is closely linked with economic activity, and its importance has become increasingly prominent. So, the current situation analysIs of the Auto insurance market, its problems, solutions and future trends put forward higher requirements.
U.S.’s Automobile insurance industry showing growth potential and future prospects are good, although U.S.’s competitive Auto insurance has been improving, but compared with many developed countries the current strength of U.S.’s Auto insurance industry as a whole Is weak aspects, how to create a good market environment, a place in the market competition, it Will be a major problem facing. We need to know how to seize opportunities and meet challenges with optimIsm, so that U.S.’s insurance industry to grow and become more sophIsticated, and gradually arose in the insurance industry of the forest.
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editor: Xiao Yu internship editor: Jiang on behalf of the United States
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