Car insurance: the first major type in insurance industry 2006

In accordance with the statistics from China Insurance Regulatory Commission, in 2006 China's motor vehicle insurance premiums reached 110.787 billion yuan, a year-on-year increase of 29.1%, accounting for 70.1% share of property insurance business, and became the first major type in property insurance industry, in which the income of Compulsory Traffic Accident Liability Insurance for Motor Vehicles carried out from July 1, 2006 achieved 21.878 billion yuan. 39.5% of vehicle insurance premium income from July through December 2006.

China Insurance Regulatory Commission Chairman Wu Dingfu, figured in "2007 national insurance work conference," that we would continue to improve the system of Compulsory Traffic Accident Liability Insurance for Motor Vehicles, to establish and improve the flexible mechanism that related to the traffic accidents, and information platforms for Compulsory Traffic Accident Liability Insurance for Motor Vehicles.

The latest survey of China's automobile insurance market from McKinsey Company shows that, Chinese auto insurance cost is expected to grow to 240 billion Yuan in 2010. Associate director of McKinsey Beijing branch Huang He said that Chinese car insurance premium is 82 billion Yuan in 2005; in 2010 it will be possible to increase to 240 billion Yuan, at an annual rate of 20-25%.

Huang He said the main reasons for the rapid growth in motor insurance costs are: the growth of individual vehicle owners; the implementation Compulsory Traffic Accident Liability Insurance for Motor Vehicles expand the insured liability; the  increasing cost of vehicle repair and medical costs; the introduction of new types of insurance.

However, the survey showed that the current motor vehicle insurance products can not completely meet the needs of the customers. 60% of consumers think there are different companies with similar products.