Research On The Impact Of Commercial Auto Insurance Rate Reform On The Efficiency Of Auto Insurance Market

Auto insurance has always been the insurance type with the highest proportion of premium income in China’s property insurance.Therefore,the healthy and orderly development of the auto insurance market is directly related to the normal operation of the property insurance market.In order to solve many problems existing in the auto insurance market under the unified rate control,such as “high insurance and low compensation”,to protect consumer rights and promote the transformation and upgrading of the property insurance industry,in 2015,China launched the widely-recognized commercial auto insurance rate reform.What is the effect of this round of reforms? This article sorts out the background and history of China’s auto insurance rate reform.Based on the theoretical basis of rate marketization and efficiency evaluation,from the perspective of market efficiency,the data of 35 domestic property insurance companies from2011 to 2018 is used as a research sample.The data envelopment analysis(DEA)method and Malmquist index measure the market efficiency of auto insurance before and after the commercial fare reform.Based on this,the double difference method(DID)is used to verify the impact of the new round of tariff reform in 2015 on the auto insurance market efficiency.The main conclusions of the study include:(1)The technical efficiency,pure technical efficiency,and scale efficiency of China’s property and casualty insurance company’s auto insurance business are not high,and the operating efficiency is severely differentiated,and the standard deviation is large,so it depends on expanding the scale to capture The business concept of market share does not promote the improvement of the efficiency of auto insurance operations;(2)The productivity level of the auto insurance market has shown a trend of "steady progress" after the 2015 rate reform,and the growth rate has slowed down compared to 15 years ago.This also conforms to the development stage of China’s insurance entering the "new normal" and should continue to be market-oriented and further promote rate reform;(3)The current round of rate reform policies has had a very significant positive impact on the efficiency of auto insurance operations,and the quality of the company’s employees and the compensation rate have also played a significant role in promoting the efficiency of auto insurance operations.Based on the above research conclusions,this article puts forward corresponding recommendations to property insurance companies and regulators.