The Impact Of New Technology On China’s Traditional Motor Vehicle Insurance Business

At present,China is vigorously developing digital and information technology transformation,which is no exception in the insurance industry.As early as 2016,the China Insurance Regulatory Commission issued the ’ 13 th Five-Year Plan for the Development of China ’s Insurance Industry ’,After that,in 2020,the China Banking and Insurance Regulatory Commission issued a " three-year action plan to promote the high-quality development of the property and insurance industry(2020-2022)",which indicates that we should adhere to innovation,make full use of scientific and technological means such as the Internet of Things and big data,enrich the commercial auto insurance demonstration product system,promote the product innovation of commercial auto insurance,and improve the service quality to a refined level.China ’s motor vehicle insurance is the largest insurance in the property insurance industry.In recent years,the premium income has declined,the comprehensive cost rate of the business is high,the product homogenization is serious,and the market competition is very fierce.In order to break through the business difficulties,the traditional motor vehicle insurance industry has been exploring the way of combining with science and technology.At present,technological transformation has been formed in all aspects of product development,marketing,customer acquisition,underwriting,and fixed loss claims.However,the effect of its specific combination with technology needs further research,which also helps motor vehicle insurance to further use technology.Therefore,this paper conducts a qualitative study on the new technology enabling the traditional motor vehicle insurance business,and conducts a quantitative study based on the perspective of operating efficiency to explore the effect of using new technology in the traditional auto insurance industry.This paper uses literature analysis,comparative analysis and empirical research methods to explore the impact of new technology on traditional motor vehicle insurance operations through the combination of qualitative and quantitative research.In the part of theoretical analysis,this paper first introduces the practical application of science and technology in motor vehicle insurance business.Then,based on financial intermediary theory,innovation theory and scale economy theory,this paper explores the mechanism of new technology on automobile insurance operation efficiency from three influence paths: reducing automobile insurance cost rate,reducing automobile insurance loss rate and increasing premium income,and puts forward relevant hypotheses.In the empirical analysis section,this article selects relevant operational data from 42 companies that have been engaged in motor vehicle insurance in China from 2014 to 2020,and uses the DEA-BBC model to calculate their operational efficiency values,which are used as the explained variable for subsequent research.Then,in chapter 5,a fixed effects model is used to study the impact of new technology on the efficiency of motor vehicle insurance operation,followed by a heterogeneity analysis of companies of different sizes,and an intermediary effect model is used to study the impact path of new technology on the efficiency of vehicle insurance operation,and finally,the robustness of the empirical results is tested by replacing the empirical model,proving the reliability of the empirical results.The research results of this article show that: First,the overall operation level of motor vehicle insurance in China is relatively low,mainly due to low pure technical efficiency,leading to low comprehensive technical efficiency,indicating that the internal organizational management level of insurance companies in China still needs to be improved;Second,the application of new technology has a positive promoting effect on the operation of motor vehicle insurance in China,and insurance companies should strengthen the application of new technology;Third,the application of new technology is to improve the operating efficiency of motor vehicles by reducing the cost rate of motor vehicle insurance management;fourth,the application of new technology has a more significant role in promoting larger insurance companies.Based on the above research results,combined with the actual situation,this paper believes that China’s traditional auto insurance has the following three shortcomings in the process of using new technology: First,the application of new technology will aggravate the Matthew effect and reduce industry and market efficiency.Secondly,the development of intelligent driving vehicle insurance promoted by artificial intelligence is still limited;third,the use of new technologies will lead to data and information security risks.In view of the above three deficiencies,this paper puts forward the following three countermeasures and suggestions: First,small-scale companies should conform to the wave of science and technology and formulate differentiation strategies;secondly,intelligent driving vehicle insurance should break through the limitations of legal level and product level,and realize the upgrading of development path.Third,prevent new technology risks and improve the regulatory system for the use of technology.The research characteristics and innovations of this paper are as follows: First,this paper focuses on motor vehicle insurance,and comprehensively explores the influence mechanism and effect of new technology on its operation,which fills the research gap of this part to a certain extent.Secondly,this paper adopts a combination of qualitative and quantitative research methods to compare the operating efficiency of companies of different sizes and different new technology applications,and finds problems and puts forward targeted suggestions.The research perspective and relevant conclusions are innovative.