The China Insurance Regulatory Commission and the 10 ministries and commissions formulated the "Guiding Opinions on Promoting the Transformation and Upgrade of the Automobile Maintenance Industry and Improving the Service Quality" (referred to as "Guidance Opinion") recently released. The market believes that this will change the distribution pattern of the automobile industry's interests, which also means the current automobile circulation. After-sales maintenance profits, which account for a significant proportion of the field, will result in new distribution methods. The auto insurance industry, which has always been in a weak position, intends to share more embarrassment in the new interest pattern. Twinkle System Technology Co Ltd , https://www.pickingbylight.com
"One car, one price" car insurance standard will form a life insurance Hangzhou branch, a relevant person in charge told reporters that the main reference factor for China's auto insurance pricing is the purchase price of new cars, "because the price difference and maintenance price of each brand parts are huge, This pricing principle is not reasonable."
The reporter learned that the new auto insurance rate marketization accounting will be implemented early next year. After several rounds of research and solicitation of opinions, the new auto insurance rates will be divided into two parts, the base rate and the risk rate, with a share ratio of 30% and 70% respectively. Through the market-based changes in tariffs, the “one car, one price†auto insurance standard will be formed.
In the base rate section, consider publishing the component price calculation and separately calculate the basic premium for each model. In other words, when consumers buy new cars in the future, 'zero ratio' will become an important reference. For new cars of the same price, the basic premiums vary greatly. For example, the China Insurance Regulatory Commission (CIRC) has shown that the price difference of parts and components of the same price range is as high as tens of thousands of yuan.
It is different from the universal scale of 1.5%-2% in the European and American market. Before the China Insurance Industry Association and the China Automobile Maintenance Association jointly released data, not only the luxury ratio of Mercedes-Benz and other luxury brands was 1273%, and the Corolla and other family cars. The zero ratio is also more than 600%. Through the adjustment of the base rate, the new car zero ratio will be more transparent.
In the risk rate section, the rate standard is calculated by the owner's usage status and maintenance habits. The difference in the risk rate and the loss ratio of different models is also very large. The relevant person in charge of the China Insurance Regulatory Commission has said that commercial auto insurance cannot be attached to only 4S stores, resulting in extremely low profit margins. Data from the insurance industry shows that the overall profit level of China's commercial auto insurance is only 4%, which is far from other countries. According to international practice, the profit level of the commercial auto insurance industry is 10%-15%. This is also an important reason for promoting auto insurance reform.
According to the "Guidance Opinion", the auto repair industry will place more emphasis on the disclosure of maintenance technical information and break the monopoly of parts and maintenance channels. Automotive industry expert Zhong Shi believes that this means that vehicle maintenance and damage will be freed from the price system dominated by 4S stores. "Auto insurance claims will also change the current status of 4S stores."
For a long time, automobile manufacturers have controlled the “original parts†channels and formed a price monopoly, which has led to losses in the auto insurance industry. The purchase expenses of auto parts in auto insurance claims account for 70%-75% of the maintenance costs.
The head of a joint venture brand 4S shop on Shixiang Road told reporters that the pricing of parts and components is completely determined by the production company, and the pricing mechanism is not clear. The reporter visited and found that the price of “original parts†is much higher than the price of parts produced by other channels. At the same time, under the current regulations of automobile three bags, “original parts†is also the main source of vehicle maintenance. "Actually, there is a bias in the market's understanding of the 'original parts'." A car repairman in Calcare told reporters that the recognition of other high-quality "brand parts" and other parts will attract more owners.
The reporter was informed that the China Insurance Regulatory Commission is promoting the establishment of a parts certification system. In the future, “brand parts†and “original parts†will be traced through different codes. Due to the difference in price between the two, the premiums for different risks will be calculated. Through price leverage, the price of “original parts†is too high.
The profit model of the entire automobile industry chain may change. Through the above methods, the reconstruction of the automobile industry's interest chain is inevitable. In the market competition, the profitability of dealers began to shift to after-sales, and the distribution of after-sales profits will eliminate the problem of automobile circulation and after-sales profit. Zhong Shi said, "This is the source of the car repair profit."
In the anti-monopoly context of the automotive industry, Zhong Shi believes that the biggest impact brought by the "Guiding Opinions" may be the change in the profit model of the entire automobile industry chain. "Now the main profits are in the main engine factory, 4S shop and other stakeholders, they rely on monopoly to make money. After the channel monopoly has been cut off, this profit model is difficult to maintain, the price of spare parts will fall, and the profit after the after-sales link will be averaged. â€
Reporter's micro-evaluation: breaking the monopoly situation is a matter of time. At the beginning of the next year, the new auto insurance billing method was officially implemented. The new billing method will be divided into two parts: basic premium and risk premium. The basic premium will be based on the price of the new car parts, and the risk premium will be based on the owner's maintenance and repair of the vehicle. The "Guidance Opinion" aims to break the 4S monopoly of the automobile maintenance business; and the deeper interest game is that the insurance company that masters the vehicle big data will form an alliance and participate in the profit of automobile after-sales maintenance through the reform of the automobile insurance standard. In the distribution, this will help to break the current situation of 4S stores monopolizing the auto repair industry through original parts.