Article
2013 China compulsory third party liability insurance market analysis
Compulsory Third Party Liability (CTPL), implemented in 2006, is a compulsory vehicle insurance which covers casualty and property loss of victims (excluding passengers and the insured) with limited coverage amount when road traffic accidents take place. The insurance team of Deloitte China has always been dedicated to study the development and changes of insurance industry, expanding and planning of management models, implementation and innovation of business operation, etc. 2013 China Compulsory Third Party Liability Insurance Market Analysis Report is written based on the latest trend of development and industry experiences. It is aimed to share the information of business performance of CTPL in 2013 as well as to optimize the future operating model to reverse the long-term profit loss situation of CTPL business.
In 2013, with 4.3 billion premium loss and 4.5 billion investment return, the industry barely achieved a profit of 0.2 billion. Based on the latest industry data and actuarial reports, we analyzed from the following aspects:
- Region analysis: Different provinces show different features in earned premium, competitor numbers, premium intensity, loss ratio and combined ratio. We have summarized from these aspects to observe the underlying pattern of business performance of CTPL.
- Growth and profit analysis: Due to the variations in operating cost, sales strategies and product types, P&C insurance companies achieved different results of business performances. In order to reveal the main reasons behind the differences, we have analyzed the CTPL business in aspects like premium growth ratio, profit ratio, loss ratio, expensive ratio, combined ratio, business segment, etc.
- Actuarial analysis: Focusing on the three largest property insurance companies while setting the industry average as benchmark, we performed an actuarial analysis in the aspects of Claim frequency, Claim severity, risk premium, average premium and floating rate level, which forms an in-depth analysis of CPTL operating and claim level.
(Simplified Chinese version only)