Despite the large market space and the high enthusiasm of insurance companies, industry insiders also pointed out that insurance companies also face several major problems in car insurance business. First, the problem of data accumulation, the second is the problem of sales channels, and the third is The problem of insurance certification.
In addition to the risk of traffic accidents, car owners need to transfer the risks caused by the failure of the car itself. In the face of the failure of the car after the warranty period expires, the relevant agencies have introduced car extended warranty services, some analysts believe that the future In the past few years, China's automobile extended warranty market will generate a market scale of more than 100 billion yuan.
From the perspective of business entities, the main players involved in this market are automakers, auto dealers, third-party service agencies and insurance companies. However, the participation of insurance companies has not been high, and according to Securities Daily. The reporter understands that the insurance industry is now preparing to increase efforts to cultivate the car extended warranty market.
The scale of the market of 100 billion yuan
According to the data of the Traffic Management Bureau of the Ministry of Public Security, as of the end of 2017, China’s motor vehicle ownership reached 310 million vehicles, including 217 million vehicles. The volume of new vehicles and used vehicles continued to grow at a high rate. Relevant research institutions believe that according to European and American automobiles In the next three years, with the substantial increase in the stock of vehicles leaving the original warranty period, the domestic automobile extended warranty service market will usher in a blowout development, and the market scale will approach 100 billion yuan.
Car extended warranty is the extended warranty service of the car. It refers to the warranty service provided by the relevant institution after the original factory warranty period (most vehicles are purchased for 3 years or 100,000 kilometers). Unlike commercial vehicle insurance, which mainly protects vehicles and personnel from traffic accidents, car extended insurance only guarantees the quality of the car itself, that is, the failure of the vehicle during normal use.
However, compared with the high insurance coverage rate of cross-border insurance and commercial auto insurance, the penetration rate of auto extended insurance business is still low. According to industry data provided by the industry, China's auto extended warranty market has been developing for ten years and is still in its infancy. The penetration rate of new car extended warranty business is less than 10% on average, while the penetration rate of extended warranty in Europe and America is above 40%. It can be seen that there is still much room for development in the future of China's automobile extended warranty service.
The automobile extended warranty market can be divided into new car sales channels and in-use car channels. From the perspective of new car extended insurance market, if the annual sales volume of passenger cars is stable at 20 million vehicles, the comprehensive penetration rate of extended warranty can be increased to 25%, one year. The average price of the basic extended warranty products is 2,000 yuan, and the annual new car channel will generate about 10 billion yuan in the automobile extended warranty market. At the same time, the demand for the extended warranty market for used vehicles, especially used cars, is also strong.
Judging from the design of extended warranty products, according to the "Securities Daily" reporter, most of the products currently only serve cars within 8 years, mainly to prevent and control risks. According to Mr. Yang, the purchase of the 4S shop is extended. The insurance service can guarantee a total of 5 years (starting from the expiration of the 3-year warranty period), which means guaranteeing the car within 8 years. However, the industry believes that with the accumulation of relevant data, the improvement of the quality of the car, and the market in the future. Factors such as increased competition, the scope of services may be further expanded.
Insurance industry plans to promote industrial car extension insurance
From the perspective of the operation mode of the automobile extended warranty business, its nature is similar to that of insurance. It is paid first and then enjoy the service, and it has a scope of protection. However, since there is no clear official definition of the nature of such business, therefore, There are many parties involved, including automakers, auto dealers, third-party service agencies and insurance companies. According to the "Securities Daily" reporter, the insurance industry's vehicle extended warranty business will gradually spread from the pilot to the full scale, speeding up the layout. The insurance industry plans to study and develop car extended insurance clauses.
In fact, the insurance company's pilot in the automobile extended warranty market has started in 2014, but it has not been promoted on a large scale, mainly in the form of liability insurance. 'Before our car extended warranty business was placed in the auto insurance department, by car loan The insurance department manages, in the form of motor vehicle extended warranty liability insurance. 'The relevant person in charge of a property insurance company told the Securities Daily that the current business is still a minority, a small amount of business.
According to the “Minutes of the First Regular Meeting of the 2018 Annual Research Working Group of the Commercial Vehicle Insurance Model Research Working Group” circulating in the industry, the China Insurance Association will study and formulate the automobile extended insurance clause before the end of August, and set up the extended warranty product group. The industry seeks the requirements of the insurance company's terms, the consumer demand situation and completes the draft design of the terms; in July, the first draft of the terms will be discussed and finalized, the industry opinions will be sought and submitted to the Banking Regulatory Commission, and adjusted according to industry feedback; Model clauses are also issued.
'The automobile extended warranty market has potential, and the insurance company also intends to develop business beyond the strong insurance and commercial auto insurance. The next step should be to increase the expansion. 'The person in charge of the above property insurance company said.
Still need to deal with the supporting problem
Despite the large market space and the high enthusiasm of insurance companies, industry insiders also pointed out that insurance companies also face several major problems in car insurance business. First, the problem of data accumulation, the second is the problem of sales channels, and the third is The problem of insurance certification.
Specifically, in terms of data accumulation, at present, as insurance companies are involved in the extended warranty market, the time is short and the business volume is small. Therefore, the failure rate, repair difficulty, and repair cost of each type of vehicle are lacking. Data accumulation, which faces certain difficulties in product design, price setting and risk control.
In terms of sales channels, the 4S stores and other platforms that the insurance companies sell under the automobile extended warranty business can also carry out the extended warranty business. The two parties form a direct competitive relationship. Once the 4S shop wants to self-operate such business, the products of the insurance companies are difficult to have. Showing opportunities, competitive advantage is weakened, although insurance companies can open up other channels, but sales will be smaller.
In terms of insurance certification, the person in charge of an insurance company’s auto insurance analyzed the “Securities Daily” reporter. For the insurance and commercial auto insurance, the liability of the insurance is determined by the traffic control department for authoritative certification, and the insurance company also has a relatively mature nuclear compensation system. And the compensation team has a wealth of experience in the control of risks. However, for the car extended warranty business, the coverage is more complicated, and it is easy to be misleading during the sales process. For example, 'buying extended insurance is equivalent to opening a grandfather. The car, the car itself has any problems to help you repair the 'free expression, such as, once the real risk, and no authority to provide authoritative certification, therefore, in the subsequent claims and maintenance services process is easy to risk disputes, insurance companies put Excessive control can easily lead to poor customer experience and even affect commercial auto insurance business. Once the risk control is too loose, it may lead to business losses and even risk of fraud.
On the whole, in the increasingly fierce competition in the auto insurance market, insurance companies need to continue to innovate their business, and the auto extended warranty business may become one of the key players in segment market innovation, or form a combination product with auto insurance, or with 4S stores. Cooperating with third-party organizations to jointly develop the market and improve the penetration rate of automotive extended warranty products are all worthy of exploration.
