It can be roughly divided into three aspects: products, services and supervision, which can basically cover the problems that most people are worried about:
Although the pricing of an insurance product includes many aspects, its simple principle is understandable. No matter which model the insurance company is based on, the risk will not be reduced, that is to say, there should be a relatively reference standard price range.
The idea of extreme insurance pricing I once wrote can be used as such a ruler for price reference. Of course, this ruler is not authoritative, I set it myself, but at least it allows me to judge the price of insurance products.
Although the products on the market look very complicated, if you read my last article, you may understand that this is largely because:
People always can't tell safety from financial management. Please face up to the objective existence of risks, and don't always think that you will lose if nothing happens, otherwise you really don't know where the loss is.
I also make a preview here. I will write an evaluation next, aiming at two kinds of children's critical illness insurance, one is consumption type, and the other is maturity type. Then I'll tell you where the loss is from the perspective of a financial planner.
After understanding the importance of distinguishing between safety and financial management, product classification for safety purposes is much simpler and can be simply divided into the following four categories:
Life insurance: whether it includes total disability liability, whether the excluded liability is reasonable and whether the guarantee time is flexible and optional.
Critical illness insurance: the length of hesitation period, whether it includes termination liability, minor illness, exemption, overpayment and death liability.
Accident insurance: whether sudden death is included, whether there is unreasonable bundling and whether the amount is high enough.
Medical insurance: whether there are special restrictions on medical treatment, whether the initial payment is suitable for you and whether the reimbursement ratio is reasonable.
No matter how good the product is, it is useless if you can't buy it. Underwriting has always been a test of risk control measures of insurance companies. When a product goes on the market, you need to first consider which group it is suitable for.
For example, preferred life insurance will be priced according to smokers and non-smokers. For example, accident insurance needs to distinguish the insured population according to the professional level.
Under the same guarantee, the lower the product price, the higher the requirements for the operating ability of insurance companies. Relatively speaking, it is possible that the requirements of underwriting will be stricter, which is the difference in risk probability brought by everyone's physique and needs to be understood.
Unhealthy people need to find suitable products for insurance, which may be a little more expensive or listed as exclusions, but they are happy to be insured. Don't cheat insurance without telling the truth.
These are the details of an insurance product, but when choosing a product, the first thing to understand is where the responsibility core of each insurance type is.
Life insurance, critical illness insurance, accident insurance and medical insurance all have their own irreplaceable functions. Try not to choose products that cover each other and have blurred boundaries.
For example, the core responsibility of critical illness insurance is critical illness. If the death liability is attached to the critical illness insurance, it will inevitably have a greater impact on the price. Why not buy them separately? Critical illness insurance is critical illness insurance, and life insurance is life insurance. Remember, don't pass the buck.
We should be aware of the price corresponding to each insurance core protection content. As for other additional responsibilities, of course, the more the better, and it will not have much impact on pricing.
But if these fancy things are added and the insurance company quietly raises the price, it is a bit of putting the cart before the horse. Personally, I will give priority to core protection.
The surface of the product is the most diverse, so I need to substitute my own subjective judgment. The following services and supervision are mostly objective data. I use the relevant regulatory rules and evaluation methods of the China Insurance Regulatory Commission for analysis.
Many people like to take the after-sales service of insurance as an example. Today, I will seriously explain that the implementation level of insurance after-sales service basically has nothing to do with agents or brokers.
Agents and brokers can only provide two kinds of after-sales services: running errands and consulting.
Consultation means that after the agent sells this insurance, if this person is still responsible, he can give you a serious and reliable answer to any questions you ask him in the future (serious is easy, reliable is difficult).
This may involve how to let others compare the products of another company, suggestions on increasing or decreasing insurance, assistance and guidance on claims settlement, etc. What you need is reliable (professional) ability.
It's hard to run errands, that is, when you need to send protection or claims information to the insurance company, someone is willing to help you send it, and express it for free.
So why do agents like to do such things? On the one hand, there are such responsible agents; On the other hand, it is convenient and secure, and willing to fight. Some people don't feel bad, do you know?
The real after-sales service is in the insurance company. Whether you call customer service directly or let the agent hand it over to the background, the rest of the process is carried out in the insurance company.
In order to illustrate this point and let everyone know what the real insurance company service is, I have to say the above nonsense, please forgive me.
Because only by understanding this relationship can we understand the next service evaluation method of the CIRC and why none of this management method is about people who seem to be the main body of service execution.
The service evaluation scope of the CIRC covers all service links and channels of insurance companies such as sales, underwriting, preservation, claims settlement, consultation, return visits and complaints (including third-party channels authorized by insurance companies to provide sales and other services).
The quantitative index of evaluation adopts the percentage system, and on the basis of this quantitative index, important service innovation and major negative events are added and subtracted respectively.
Important service innovation refers to a major insurance service innovation project that insurance companies have achieved practical application results in improving service quality, service efficiency and consumer satisfaction. According to the actual application effect, add 1-5 points.
Major negative events refer to the negative reports of important media, major mass incidents or other outstanding problems in insurance services identified by the jury because of serious problems in insurance services. Deduct 1-5 points according to the severity of the problem.
The quantitative indicators of service evaluation of life insurance companies are as follows:
This 12 index includes the whole insurance sales service link, and the claims related and complaint handling related that consumers are most concerned about are high-weight scoring assessment items.
According to the score, the service rating of the head office of an insurance company is divided into four categories: A, B, C and D, including AAA, AA, A, BBB, BB, B, CCC, CC, C, D*** 10.
The specific scoring criteria are as follows:
For Class C and Class D companies, the CIRC takes such regulatory measures as centralized interviews, issuing regulatory letters, requiring rectification, and intensifying on-site inspections.
If the service quality problems of Class D companies need accountability, the Insurance Regulatory Bureau will even put forward accountability.
Let's take a look at the CIRC service rating of life insurance companies in the last quarter (only A-level):
Besides Ping An and China Life Insurance, most people also know several insurance companies? Unfortunately, the top insurance companies are not well-known, but the last three are very popular, and even one insurance company has a premium income of 0 yuan (manual funny).
I believe that under the authority of the CIRC, in the face of such a comprehensive and objective rating, there is nothing to say about any emotional routine, right? Poor service in small companies? Naive!
Among the 59 life insurance companies participating in the evaluation, there are 46 companies with Grade B or above, which means that the service of insurance companies is still relatively good, but as we all know, large-scale companies are not the best in service evaluation.
It can be seen that it is far from the time to compete for the size of the company. Internet has greatly narrowed the distance between insurance companies and consumers. Putting down prices and shelves and taking customers as the orientation are the way to survive in the future.
When it comes to supervision, we have to mention the second generation of compensation of the China Insurance Regulatory Commission. The second generation of compensation in China adopts the internationally accepted three-pillar framework;
It fully considers the risk stratification theory, the logical connection of the three pillars, the asset-liability assessment framework, the life insurance contract liability assessment, the risk management requirements and assessment (SARMRA), the comprehensive risk rating (IRR), the market restraint mechanism and so on.
To put it simply, China's compensation for the second generation is a scientific and much stricter supervision system than the world standards. Running an insurance company in China is scary. Look, who was invited to tea again?
The comprehensive risk rating system provides a set of strict rating standards, which makes the risks of insurance companies traceable.
Comprehensive risk rating mainly includes two aspects:
Assess risks that are difficult to quantify (operational risk, strategic risk, reputation risk and liquidity risk).
Comprehensively consider the solvency adequacy ratio and the evaluation results of the four types of risks that are difficult to quantify in the preceding paragraph, and evaluate the comprehensive solvency risk of insurance companies.
Risk assessments that are difficult to quantify include the following four categories:
Operational risk: refers to the risk of direct or indirect losses caused by imperfect internal operational processes, personnel, systems or external events.
Strategic risk: refers to the risk that the strategy does not match the market environment and the company's ability due to the ineffectiveness of the strategy formulation and implementation process or the change of the business environment.
Reputation risk: refers to the risk of loss caused by the negative evaluation of the insurance company by stakeholders due to the operation and management of the insurance company or external events.
Liquidity risk: refers to the risk that an insurance company cannot obtain enough funds to pay due debts or fulfill other payment obligations in time or at a reasonable cost.
China CIRC will classify insurance companies into the following three categories according to their solvency, and implement classified supervision:
Insufficient companies: refers to insurance companies with solvency adequacy ratio below 100%;
Sufficient first-class companies: insurance companies with solvency adequacy ratio between 100% and 150%;
Adequate Class II companies refer to insurance companies with solvency adequacy ratio higher than 150%.
The China Insurance Regulatory Commission has taken a number of regulatory measures against insufficient companies, including restricting commercial advertisements, limiting executive salaries and on-the-job consumption levels, adjusting responsible persons, and suspending business for rectification. It may even be taken over when it is serious.
Even if there are enough Class I companies, China Insurance Regulatory Commission may require enough Class I companies to submit and implement plans to prevent insolvency.
Classified supervision evaluation adopts weighted average method. Among them, the weight of quantitative risk score is 50%; The risk score that is difficult to quantify is 50%.
Based on the evaluation of operational risk, strategic risk, reputation risk and liquidity risk, China Insurance Regulatory Commission (CIRC) combined with the solvency adequacy ratio index reflecting the quantitative risk status of insurance companies, obtained the comprehensive rating of solvency risk of insurance companies.
According to the comprehensive risk of solvency, the China Insurance Regulatory Commission divides insurance companies into four regulatory categories:
Class A companies refer to companies with solvency adequacy ratio up to standard and low operational risk, strategic risk, reputation risk and liquidity risk;
Class B companies refer to companies with solvency adequacy ratio up to standard and relatively small operational risk, strategic risk, reputation risk and liquidity risk;
Class C companies refer to companies whose solvency adequacy ratio is not up to standard, or whose solvency adequacy ratio is up to standard, but one or more of operational risk, strategic risk, reputation risk and liquidity risk are high;
Class D companies refer to companies whose solvency adequacy ratio is not up to standard, or whose solvency adequacy ratio is up to standard, but one or several types of risks are more serious in operational risk, strategic risk, reputation risk and liquidity risk.
For each rating company, the CIRC will have corresponding regulatory measures, and the regulatory evaluation results of the CIRC reflect the solvency risks of insurance companies such as capital adequacy ratio.
But even in the most risky category D, the most likely situation is that the contract is taken over by another insurance company, and the guarantee will not be invalid.
Besides China insurance company, which other financial institutions can do this? Sir, this is a characteristic of China. You have worked hard.
Combining product coverage, service coverage and supervision coverage, I have my own personal comprehensive rating standard, which I personally use as the judgment standard for recommending insurance products. Let's take a product for example.
In the service evaluation of insurance companies above, I believe everyone can see that China Ping An Life Insurance Company of China and Centennial Life belong to Class A, which means that the service evaluation conclusion of the CIRC is that the service quality of the two companies is similar.
However, for most of us, this may be a world with different degrees of popularity. Who calls a family that burns money to advertise?
But how many grades are Centennial Kanghuibao's products cheaper? I won't compare the products with my former boss here, so as not to hurt my feelings. )
Here I compare the previous model of serious illness and use data to illustrate how outrageous Kang Huibao is:
By the way, I also brought Hongkang's healthy life to the dinner table. We can see that healthy living is very close to my model, and the price reaches 97% year-on-year, which means that the price is only 3% lower than my model.
Hongkang Healthy Life 20 13 came out, and the name of extremely serious illness resounded through the industry for four years. At that time, it was called a clean stream in the insurance industry, which was worthy of respect.
In the case of serious illness, Centennial Kanghuibao is the most extreme price in the insurance market at present. The price is equivalent to 74% of the model, which is 26% cheaper. My personal judgment may have two reasons:
1: It may be because of the improvement of living standards that the latest probability of serious illness has decreased. Kanghuibao is priced according to its own data, so it can be so cheap.
Maybe his family is also trying to seize the market. It may be difficult to produce products that are much cheaper than his home in the short term, and it is hard to say that they may even be removed from the shelves in the future (refer to the information disclosure of Hongkang).
But this is only my personal fantasy. Anyway, there are still many insurances on the market, and Kang can buy them now.