CHINA’S REGULATOR PLANS COMPULSORY VEHICLE LIABILITY PREMIUM REDUCTION

The China Insurance Regulatory Commission (CIRC) is proposing to allow insurance companies to adjust the premium rate for compulsory vehicle liability insurance, according to reported comments from assistant chairman Yuan Li. The current premium rate is set by the CIRC and is due to be reviewed upon the completion of more research and analysis into the operational performance of the insurers in this relatively new market for China. Research already released by the CIRC has shown a number of regional disparities in the premium rate. Shanghai, which deploys a variable premium rate, had 40.7% of its 409,200 vehicle liability insurance policyholders paying reduced premiums, with 15% spending more and the remaining 44.3% seeing their premiums remain the same.