Study On The Business Model Of Compulsory Insurance In China

Compulsory insurance, namely Compulsory Traffic Accident LiabilityInsurance, it is a very important insurance of commercial vehicle insurancemarket, the compulsory insurance system is also China’s first nationallegislation enforced. The main role of compulsory insurance is a law to protectthe rights of accident victims compensation third person, played a major rolein taking the car ’s society. CIRC data show that in2012the total number ofvehicles to compulsory insurance coverage reached130million motorcycles,total premium income is111.4billion yuan, the annual limit of liability for thepayment commitment156187billion yuan, a total of20.52million cases oftraffic accidents from the payment, the payment A total of82.1billion yuan.From the data, which compulsory insurance plays an important role can not beignored in terms of road traffic safety, but also stressed the need tocompulsory insurance market healthy and stable development. Since July1,2006compulsory insurance system began to implement since our stronginsurance market would take " government pricing, insurance companyself-financing " business model that has a double meaning: one meaning is,required the compulsory insurance fully functioning social assistance of, followthe " no profit no loss " principles;Another meaning of the various insurancecompanies have done their best in the absence of any tax benefits on the basisof self-employed compulsory insurance business, and self-financing. Thismodel against the for-profit nature of the insurance company, its drawbacksgradually been threatening the healthy development of compulsory insurancemarket, business model of compulsory insurance reform is imperative.Currently, many compulsory insurance market is facing problems to besolved, domestic scholars mainly in terms of improvement of the compulsory insurance legal system, as well as to determine the rates of other studies,and less on compulsory insurance market operating conditions of the study,the main stay in the status analysis phase. Although some experts questionedthe existing business model of compulsory insurance, but the existingfragmented view of fragmentation, rarely to learn from the successfulexperience of other countries mode, there is no system proposed reforms ofthe existing model.This paper describes compulsory insurance concepts, features, functions,and its commercial three insurance distinction on the basis of a combination ofcompulsory insurance market situation and characteristics, in-depth analysis ofthe conflict and the negative consequences of the current mode of existenceand the entire auto insurance impact on the market, the necessity and urgencyto pay compulsory insurance business model reform. Finally, the papercompares the two operating modes representative international: market modeland the agency model, namely the United States, Britain, Japan and Taiwan,four representative national business model, the four countries analyzed thecharacteristics of each model, the operating mechanism and advantages.Reality of our country, in line with China’s national conditions proposed to paycompulsory insurance business model, that "under the government strictlysupervision’s market model " to achieve healthy development of China’scompulsory insurance market.