Auto insurance fee to change electricity sales channel business fell sharply 60%
Electricity sales channel customers are mostly price-sensitive population, after insurance fees change, price convergence across channels, a large number of customers flowing traditional channels
Auto insurance rates after market-oriented reforms, electricity sales channel business appeared down about 60 percent compared to before the landslide, and fee changes. Electricity sales as its own sales channels, many insurance companies have been valued, but now customers are mostly flow to car dealers, individual agents and other traditional channels, the insurance company to develop its own sales channels in path length and resistance state. Recently, the impact of insurance costs for change, accept the "Securities Daily" interviewed a number of insiders pointed out that the above problems.
Following the pilot commercial auto insurance reform in six regions June 1, 2015, January 1 this year, to further expand the pilot areas to 18. Up to now, about 50 insurance firms in the commercial vehicle insurance clauses and premium rates in pilot areas to obtain approval. Far from cost change of situation, the overall smooth running, but electricity sales channel has been badly hit, insurance companies explore the difficulties of independent sales channels.
Customers turn to car dealers and other traditional channels
"In the pilot areas, after changing our auto insurance costs and electricity sales channel operating expenses before change is about to shrink by 60%, from the case of industry-wide perspective, this figure is also its up and down." A large property insurance companies in electricity sales business owners Humanities Road (a pseudonym) on the "Securities Daily" told reporters. For the electricity distribution business in the auto insurance rate reform to decline the issue, the reporter to verify the relevant parties of different insurance companies, have been a positive response.
Once, the development of electricity sales platform is an important starting point for the insurance company building the direct sales channels. Data show that in 2014, PICC, Ping An Property & Casualty, CPIC and other 28 property insurance companies to carry out telemarketing property insurance business achieved a total premium income of 89.345 billion yuan, accounting for 11.84% of overall property insurance premium income. Among them, the auto insurance premiums 88.487 billion yuan, accounting for 99.04 percent of total electricity sales of premium income. Since insurance companies in electricity sales channels have low operating costs and the cost of the middle two advantages, regulatory policies therefore given 15% discount space, when the insurance company during the preferential tariff provisions declare basic run, attract a lot of price-sensitive customers. Today, electricity distribution channels has become the main channel for numerous business property insurance companies.
"Our market research showed that the majority of owners are price-sensitive people, before insurance fees change, electricity sales customer renewal rate is high, but now the situation is serious client off, the scale of business has shrunk about 60 percent, the main flow of the traditional Traditional channels of car dealers and individual agents channels. "Wen Tao told reporters.
On the one hand, after insurance fees change, each channel auto insurance premiums prices converge, the price advantage lost electricity sales channels. Reporters learned that the insurance fee reform pilot areas, premium calculation method used are all insurance firms: commercial auto insurance premiums = pure risk premium benchmark / (1 surcharge rate) × coefficient × NCD independent underwriting factor × independent channels coefficient. Wherein the reference pure premium and NCD risk factor adjustment program with reference to the rate base rate of China's insurance industry association drafted executed. Additional expense ratio is intended to be 35%. Prepared by independent insurance firms underwriting factor adjustment programs and autonomous tariff rates adjustment program channel coefficients can be used in the [0.85 - 1.15] range.
"Although independent and autonomous channels underwriting factor specifies a range of factors, but the insurance company is almost regarded as coefficient of 0.85, a direct drop in the end, the premiums hit the floor price." A medium-sized insurance companies auto insurance responsible person Jiangda (a pseudonym ) he said, so the premium price for each channel convergence, electricity sales channel customers off.
On the other hand, the industry pointed out that the previous pseudo electricity sales business that turn electricity sales also shrunk dramatically, and the rest is truly inbound and outbound business, which is one of the reasons electricity sales channel business fell sharply. Turn electricity sales, that is, customers will get the other channels to electricity sales channels, with the price advantage retain customers approach.
Despite losing the price advantage, but electricity sales business fell so fast still exceeded expectations. Reporters learned that this is largely derived from at premium prices being equal, the traditional channels of higher marketing costs and greater operational space and additional services can provide more.
An unnamed industry sources, electricity sales the whole process of regulation is very strict, and concessions in the form of more traditional channels, gift points, fuel card, or conduct illegal processing, vehicle inspection agency services, etc., and even The customer also after Chuxian flexible "work" for example, the car was designated, even if the owner did not buy scratches insurance, but in the maintenance of these agents can be credited service under other insurance items, the customer's repair costs passed on to the insurance company, and said a lot of additional services are unable to provide electricity sales channels. "For customers, electricity sales channels, price did not, the service is less than the traditional channels, the loss is a natural consequence." The industry source told reporters. He laments: "intermediary channels will be more powerful, direct insurers road is difficult."
With the advantages of good electrical pin on renewal
Electricity sales, net sales, are the two main starting point for the insurance company and build our own sales channels. However, after the market-oriented reform auto insurance rates, electricity sales business has been a significant impact, network marketing business has also been some impact, but the traditional sales channels tend to grasp by the car dealers, individual agents and other third-party intermediaries, insurance companies discourse Right weak. It seems that insurance firms currently developing independent sales channels difficult, but the industry appeal, although the road is long and the resistance, the insurance company can not give up, we must strive to build our own sales channels.
Important path electricity sales as an insurance company's direct sales channel, after fees change, is currently facing a major blow to whether the short-term? The future direction of each channel that? Jiangda said electrical pin facing short-term impact is difficult to avoid, but in the long run, the insurance company to try the idea of passthrough customers, electricity sales, net sales will continue to be an important starting point, but the development strategy must make some adjustments.
First, sales in renewal business to focus on good use of the advantages of electricity. He believes that as long as customers for insurance companies to establish trust, then used as the renewal of electricity sales channels means more successful than others. Prior to the industry data indicate that many companies telemarketing channel customer renewal rate of nearly 80 percent, the best renewal rate data abroad for more than 90%.
Secondly, we must recognize that the current decline in electricity sales channel business is the main cause of the sudden loss of a huge 15% of the price leads to psychological gap, however, with the insurance fee reform forward, the industry regulator will be further strengthened, not only to halt electricity sales promotion , fees from other sources will also be strict control, in order to truly compete more equitably across channels. By then, the electricity sales of convenient, fast and so would become its advantage to attract customers.
In the short term phenomenon fee change after the status of car dealers and other third party distribution channels of increasingly strong. However, insiders pointed out, whether it is before or after, the insurance company will have to build its own direct sales channel efforts. In this regard, the insurance company is from the establishment of its own sales force, store sales, telephone sales and network marketing several efforts.
Among them, the net sales channels are emerging in recent years, in 2014 there are 33 insurance companies to carry out network marketing business, achieved total insurance premium 50.57 billion yuan, accounting for 6.7% of the property insurance premium income, which, motor insurance 48.34 billion yuan , accounting for 95.58%. Community stores direct sales channels have been around seven or eight years, but is still in the exploratory stage, PICC, Hua Insurance, Huatai Insurance, CPIC all trying to sell, although the initial investment is still faced with high costs, lack of experience, etc. problem, but Paul, executive vice president Wang and told reporters, said: "Difficult, but to insist!" Insiders also said that the store is a direct transition from peddler to the shopkeeper, as is face to face communication, to win the trust of the people, At the same time, stores will toward the direction of development of community integrated financial supermarket has become the people's financial product solutions provider, while providing life convenient for them.
