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China auto insurance pricing undergoes further reform

The China Insurance Regulatory Commission introduced new rules to further reform commercial auto insurance premiums, effective June 8, the regulator said in a June 9 press release.

From June 8, property and casualty companies in most parts of China may extend a discount of up to 25% on auto insurance premiums, from 15% previously, based on the cost of direct, telemarketing and online sales. In Shenzhen, however, the discount ceiling was extended to 30% from 25% previously.

In addition, P&C companies in five provinces — Hebei, Fujian, Guangxi, Sichuan and Qinghai — and three cities — Tianjin, Qingdao and Xiamen — can extend premium discounts to 25% from 15% previously, based on individual driver and vehicle records. In Henan province, the discount ceiling based on such records was extended to 20% from 15%, while in Shenzhen, this premium discount on individual records was extended to 30% from 25% previously.