[Epoch Times, August 02, 2021]The floods in Zhengzhou on July 20 caused at least 400,000 cars to be flooded, and the estimated loss of Henan auto insurance exceeded 6.4 billion (RMB, the same below). Some people in the industry said that auto insurance claims pressure increased sharply in the second half of the year, and their ability was being tested, while the public said that insurance companies make so much money every year.
According to statistics from the Henan Automobile Industry Chamber of Commerce, as of now, 400,000 vehicles in Zhengzhou have been damaged by the flood on July 20.
According to the news of China Securities Journal on August 1, as of July 28, Henan insurance institutions had received a total of 412,300 claims, with a preliminary estimated loss of 9.804 billion yuan. Among them, 226,400 auto insurance reports, with an estimated loss of 6.412 billion yuan.
According to incomplete statistics, many insurance companies currently estimate the compensation situation as follows: PICC’s estimated compensation will exceed 2 billion yuan; Ping An of China’s estimated compensation will exceed one billion yuan; China Life’s estimated compensation will exceed one billion yuan; Sunshine Insurance estimates The compensation is over 500 million yuan; China Insurance estimates that the compensation is over 200 million yuan; the Earth Insurance estimates that the compensation is about 100 million yuan…
A related person from a large property insurance company revealed: “The pressure of auto insurance claims after the Henan disaster is unprecedented.” Henan P&C insurance has already suffered losses in the first quarter. Coupled with this heavy rain, the comprehensive loss ratio is bound to soar, and the pressure of auto insurance claims will increase sharply in the second half of the year. .
The international rating agency Fitch Ratings stated that insurance claims caused by heavy rains in Henan will further pressure the underwriting profit margins of Chinese non-life insurance companies in 2021. This is for most auto insurance companies that face rising claims after the implementation of the comprehensive auto insurance reform in September 2020. It can be described as worse. Fitch estimates that the amount of insurance claims brought by the current flood conditions will exceed 8 billion yuan, accounting for about 0.7% of China’s total non-life insurance premiums in 2020.
Faced with huge indemnities, the mainland insurance industry may face a reshuffle. Relevant data shows that the comprehensive cost ratio of auto insurance business in the first half of the year is 99.88%, and the remaining 0.12% is also concentrated in large-scale head insurance companies. This heavy rain has become a test forcing the transformation of small and medium-sized property insurance companies.
A person in charge of a small and medium-sized property insurance company revealed: “It is expected that the auto insurance market will intensify the differentiation. Some small and medium-sized companies with less competitiveness will have more difficulties in operating, and the scale of insurance premiums may decrease, and there may be industry-related underwriting losses within a certain period of time. Circumstances, the industry may face a’shuffle’.”
Mainland netizens expressed dissatisfaction with the insurance industry’s claims that it was “stressed” and “loss” in the face of this claim.
The netizen “confused” said: “Insurance companies make so much money every year, and now if you pay for it, it is called facing the big test? There are still so many insurance companies, and not just one company who pays so much… and this hasn’t happened once in so many years. Why don’t you earn so much in the usual years? Now I’m paying a little and I’m starting to scream…”
Some netizens said: “What is the big test? The empty glove white wolf has not made less money.” “I have earned so many years, what is the point of not talking and losing some money.”
There are also netizens who doubt that insurance companies will lose money: “As long as there are no accidents every year, they basically make a steady profit without losing money. Just pay more this year. Can this affect the insurance company?”
Some netizens questioned: “This is to increase the premium.”
Editor in charge: Liu Yi#
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