Second-time fee change kicks off DRP to point out the way for the accident car market

At present, the horn of the secondary fee reform for commercial auto insurance has been buzzing across the country. At the same time, the China Insurance Regulatory Commission recently issued the "Interim Measures for the Retrospective Management of Insurance Sales Behavior" and the "Notice on Remediation of Motor Vehicle Insurgency Market Disclosures", demonstrating the determination of the government management department to regulate the development of the auto insurance market.

On July 25th, CCCIS, an informatization solution provider in the field of auto insurance claims, reached a strategic cooperation with National Ningbo Top Car Dealer Ningbo Chenchen Group and accident car repair chain Fix Auto Masters to jointly launch a new DRP landing in China. The journey is dedicated to exploring and reshaping the after-market of the accident in our country, which is deeply trapped by prisoners.

Under the background of secondary fee reform, in the face of the new challenges brought about by industry changes, why dealer groups and independent maintenance companies in accident vehicles invariably use DRP as a strong promoter of transformation and upgrading? What kind of chemical reactions will occur in the accident car maintenance industry and the 4S shop after the landing of the DRP?

Second-time fee change forced industrial upgrading

On June 9, the China Insurance Regulatory Commission issued the “Circular on Issues Concerning the Adjustment and Management of Commercial Vehicle Insurance Rate and Other Related Issues”, and the secondary fee reform curtain was opened. Then the government supervision storm continued. At the time of industrial change, the entire industry chain is losing money and the industry is improving efficiency and evolving the business model, prompting insurance companies to reduce the cost of compensation, and the accident car repairs the company's transparent and independent car repairs, and the 4S shop peels off the car maintenance industry and improves efficiency. To increase profits.

All along, premiums are the focus of insurance companies, but with the intensification of competition, the advancement of auto insurance fee reform, the reduction in the number of consumers out of danger, and the reduction in premium growth rate are indisputable facts; the overall cost ratio of insurance companies remains high. Seriously affected the improvement of the profitability of insurance companies.

“In this case, insurance companies must make efforts to reduce the cost of compensation and management costs. Insurance companies have strong motivation to change the status quo, and they also have a very big right to speak in the post-accident car market. DRP (Direct Repair Program, that is, auto repair factory certification direct repair system) is also a natural choice as its inevitable choice.” CCS China area after the person in charge of the market, said Liu Xi.

At present, the accident car maintenance industry in China is relatively confusing. There are many distrusts among insurance companies, maintenance companies, spare parts suppliers and consumers. The relationship between the four is difficult to balance. There are many grey and opaque places in the damages of accident vehicles. The main reason is that the rules for distributing the benefits of the entire ecology are not yet reasonable.

"Always, maintenance companies are in a weak position in cooperation with insurance companies. Some maintenance companies use unfair means to make money, and maintenance levels are of low quality and inefficient, which damages the interests of consumers and damages the insurance companies. Benefits.” Zhou Lingjie, Vice President of Fix Auto, said that maintenance companies want to enter into a healthy partnership with insurance companies to obtain a reasonable profit. DRP helps the maintenance companies achieve this goal.

According to data from the China Insurance Association, the rate of risk reduction at the time of a fee change was reduced by 20%. The advancement of the second fee reform will also further reduce the risk rate, and the insurance cost of the owner will also be reduced. At present, about 50% of the profits of 4S stores come from the maintenance of accident vehicles. The reduction of the risk rate and the income of insurance companies will inevitably affect the profits. 4S stores must face the reality and actively transform to seek breakthroughs.

Ma Xiaoyong, CEO of Ningbo Puchen Group, said that 4S stores can provide consumers with more competitive and more efficient services, so they are also more competitive in the maintenance of accident vehicles. However, after the second fee reform, the insurance company pays more attention to reducing claims costs. The high price of 4S stores cannot meet the needs of insurance companies. When the insurance company sent the accident vehicle to an independent maintenance factory, the maintenance price was reduced, but the invisible gray cost was also increasing, and the non-standard service would lead to the loss of customers. The industry urgently needed a set of effective solutions.

DRP becomes an invariable choice

How to provide consumers with a transparent and efficient maintenance experience? How can the insurance company reduce the cost of compensation and improve profitability? How to make an accident car independent maintenance company get a reasonable profit? How can the 4S shop seize the accident car to repair this profit point and form a healthy cooperation with the insurance company? At present, DRP has become the consistent choice for various business entities, but the promotion of DRP can not be separated from the specialized automobile insurance claims information technology services such as CCCIS which can provide transparent data, powerful control systems, and a whole set of methodologies based on them. Business. The Ningbo Jiaochen Group and Fix Auto Masters respectively achieved strategic cooperation with CCCIS on the basis of DRP. It is a reflection of the industry's different business models, based on the catastrophic problem of resolving the accident car market, and responding to the industry challenges brought about by the secondary fee reform. Act of.

Liu Sijun said that CCC's DRP system has always advocated "fine management and control", that is, not only can prevent fraud in the control of claims, but also can be optimized. Whether it is a "black and white problem" or a "gray problem" can be managed effectively. Insurance companies must drive down DRP to reduce claims and labor costs under the drive of secondary fee reform. Without replacing labor by machines and systems, the cost will remain high. Since the beginning of last year, insurance technology has been a hot area for the aftermarket and investors. Most of the project plans for claim services have hoped to achieve transparency in the maintenance process, maintenance information, and source of accessories. These can be seen as the fact that the parties have seen insurance companies Claims service market demand, and localization attempts from various angles.

This time, CCCIS has established a strategic-level cooperation with Dingpiao, a Ningbo-based shangchen Group and the Master Fix Auto, and is based on the common vision and consensus of the DRP ecological post-market that is swayed by the accident vehicle. The officially launched DRP landed in China.

According to Hou Qi, General Manager of CCCIS China, as of now, CCCIS has communicated with many major property and casualty insurance companies the key steps of the implementation of the DRP, the roadmap and the necessary technical solutions, and repeatedly studied the DRP landing with the insurance company. The standards, management elements, and management experience, as well as preparations for auto repair factory compliance, include the system activation, training, and compliance guidance of the auto repair factory.

“Establishing an excellent system, data analysis and methodology can minimize the high cost caused by distrust, information opacity, and asymmetry in all entities. The solution to these problems is a huge contribution to the efficiency of various stakeholders in the industry. This time, through cooperation with representative auto repair companies, assisting them to do a good job of 'three links and one leveling' and obtaining insurance company certifications and credits is a beneficial practice for DRP landing in China.'

Landing yet to be explored locally

Although DRP has been successfully operating in the United States, but the status quo in China's industry is different from the United States, after all, the insurance company's operating methods are also different, so the DRP landing also needs to carry out localization exploration, out of DRP road for Chinese characteristics.

"Assume that the final landing of the DRP is 'realizing communism,' and now is the 'primary stage of socialism.' The most important thing is that we must dare to try to allow insurers to see the possibility of DRP landing in our country and formulate standards. Achieve better promotion.” Zhou Lingjie believes that the operational mechanism and operational basis of China's regions are not the same. In some cities where accidents are relatively mature in the market, DRP will achieve faster landing, and it also requires insurance companies to spend time. Efforts to promote. At present, Master Fix Auto has already conducted pilot cooperation with Ping An Group's certified parts suppliers to further optimize the procurement information system and gain the trust of insurance companies.

“Let the damages, maintenance and spare parts purchases become transparent, maintain reasonable profits for maintenance companies, ultimately increase consumer satisfaction, and reduce the overall cost of insurance companies.” Zhou Lingjie. In 2016, Geng Biao and Fix Auto entered into a partnership. Fix Auto is a pioneer in DRP landing in North America and has cooperation with insurance companies in the top 10 global market share. Therefore, it is very experienced in this respect. Fix Auto's cooperation with CCCIS in North America is very deep. Fix Auto’s 200 accident car repair shops all use CCCIS's system to enter into an authorization relationship with insurance companies. Since 2016, Master Auto of Fix Auto and CCCIS have started cooperation and communication in China, and based on foreign data management systems, they have conducted localized applications.

“Fix Auto Masters wanted to build a standardized system of accident vehicle maintenance through cooperation with CCCIS. It was implanted in each store, through the establishment of a trust mechanism, and obtained authorization from the insurance company to help each maintenance store become an extension service provider of insurance companies. Zhou Lingjie said that he believes that DRP has the potential to become the best way for insurance companies to cooperate with maintenance companies. At present, there is an urgent need for a quick start and the landing of the "first shot" will be the first to obtain the fighter.

For the Ningbo Puchen Group, when the sales of new car sales by the dealership group is hardly profitable, and the profit contribution from new car sales continues to decrease, the transformation of dealers to after-sales services is an inevitable trend. Ma Xiaoyong introduced that in 1997, Ningbo Puchen Group had hatched the “Changchen Inn” which was specially designed to repair accident vehicles, forming a model for repairing the brand 4S shop + accident vehicle, which can provide consumers with the same quality as 4S stores. Maintenance resources, the price is relatively low. However, due to the insufficient number of accident vehicles for repair, the insurance company is not willing to push the accident vehicle to the “Changchen station”, resulting in unsatisfactory actual operation results. At the same time, Ningbo Minchen Group owns an insurance agency company, Dinghong Insurance. The company hopes to add butler service behind the owner's insurance policy as an extension of the insurance company's business to help it make claims settlement losses and other services.

“We hope to introduce a standardized management system through cooperation with CCCIS to obtain the trust of insurance companies and open up the market space. The original so-called 'cooperative relationship' is lifted, mutual respect is realized, resources are transferred to each other, and more lasting and more trustful are established. Cooperation relationship." Ma Xiaoyong said that Ningbo Chenchen Group is ready to transport more insurance premiums for insurance companies. By establishing a lean management system for workshop standardization operations, it helps insurers reduce the accident car claims index, reduce the cost of accessories and improve the efficiency of personnel operations. Consumer satisfaction.

In addition, the Ningbo Puchen Group relied on Ningbo, the first national insurance innovation and comprehensive pilot zone, and hoped to make breakthroughs and innovations in accident vehicle maintenance and auto insurance, and find a transition path in response to more severe market competition.

The landing of the DRP is a work that emphasizes logic and order, requires rigorous and scientific methodological guidelines, and requires clear and clear goal management. These clear goal management are urgently needed by insurance companies and maintenance companies. In short, to achieve "trust and transparency, transparency in management," so that all parties can evaluate each other, and mutually recognize these evaluation results. Based on this result, there will be a turning point in the remodeling of the industry. Perhaps the greatest effect that the DRP has brought to the industry is to promote the establishment of an industry-specific credit system that can truly support all parties.