Recently, six property insurance companies in Suzhou jointly issued an announcement to suspend the business of motor vehicle consumer loan guarantee insurance. Many cities such as Guangzhou, Shenzhen, Shanghai, Beijing and Wuxi have also suspended car loan guarantee insurance. The closed business is not only aimed at financial institutions such as banks, but also related insurance handled by car dealers and individuals. The insurance policies issued by various insurance companies in the past will be fulfilled as usual. As for when the business will resume, there is still no clear timetable. Car loan insurance stopped: where is the root cause? Reason one: the high default rate of loans scares off car loan performance insurance. The biggest problem faced by consumer loan guarantee insurance is the lack of social credit system. At present, the financial credit system of individuals and enterprises in China has not been established, and there is a lack of credit grade supervision and a mechanism to punish those who break their promises. Some consumers are indifferent to credit concepts and moral hazard is becoming increasingly prominent. Moreover, cars are different from buildings such as real estate, which are easy to hide and move, and it is difficult to preserve as collateral, so moral hazard is very difficult to control. It is common for car buyers to pay back money, not to urge it, and to delay it after urging it. Man-made moral hazard has become the biggest risk faced by insurance companies. At the same time, there are some unavoidable system risks and policy risks. At present, the import tariffs on automobiles and the domestic automobile prices are constantly decreasing, and the value of automobiles as collateral has dropped greatly and too fast. Coupled with the fixed annual depreciation rate, the value of mortgage cars is likely to be difficult to offset the debts owed. When the cost performance ratio of new cars exceeds that of loan vehicles, it may affect the borrower's willingness to repay loans. Some dishonest consumers are likely to take advantage of the loopholes in the law, deliberately use cars to repay loans, give up repayment, and use the money that should have been repaid to buy new cars. If the bank can't receive the repayment, it can ask the insurance company for compensation, and if the insurance company that has obtained the subrogation right can't get the debt back, it can only stare at the car that is not worth much. Therefore, insurance companies play a passive role in most car loan disputes. The second reason: unprofitable car loan insurance is unsustainable. On the one hand, the high return of agency fees and the stubborn rebate have seriously affected the income level of insurance companies. Although according to the regulations of the China Insurance Regulatory Commission, the commission that insurance agents can get is 8% of the premium they receive, in order to seize the market, some insurance companies actually give insurance agents a refund that exceeds this limit, and some even reach 2%-3%. On the other hand, the pressure on insurance companies to pay compensation is increasing. In the automobile consumer credit guarantee insurance business, insurance companies bear the guarantee risk, but some insurance companies are not standardized in operation, and even entrust merchants or banks to issue guarantee insurance policies, which makes it difficult to play a role in the investigation and audit of the credit status of credit objects, which is an important reason for the increase of claim risk. At the same time, due to the asymmetry of information between the insured and the insured, there is no tracking system for claims information of the insured, and some high-risk insured can move freely, making the high-risk clauses formulated by insurance companies ineffective. Three reasons: the rights and responsibilities of the various entities are not equal. First, the obligations of banks are unclear and the credit management entities are offset. Many banks can't accurately understand the connotation of performance bond insurance, and they don't pay enough attention to the exemption clauses of insurance companies. They think that automobile consumption loans are provided with performance insurance by insurance companies, and the borrowers will be compensated by insurance companies if they don't pay back at maturity, so there is no risk for banks. Therefore, in the process of handling automobile consumption loans, they often give up their own advantages and let insurance companies and dealers handle their own obligations. For example, the investigation of the credit status of car buyers, which should be carried out by banks, is basically operated by insurance companies. According to the investigation of insurance companies, banks conclude that all car buyers who are agreed by insurance companies to underwrite loan performance insurance are almost "responsive" and rarely conduct on-the-spot verification of borrowers' credit, repayment ability and income level. Second, the insurance company is not standardized when signing the agreement, and the insurance liability is infinitely expanded. The purpose of underwriting loan performance insurance by insurance companies is to compete for the new car insurance market locked by performance insurance. Due to the fierce competition in the insurance market, insurance companies, in order to expand their own motor vehicle insurance market share, do not hesitate to relax the examination of borrowers' qualifications to insure automobile consumption loan performance insurance, impose various preferential conditions on insured customers, especially automobile dealers, and compete with banks to increase their own load, which objectively makes loan banks "fearless" in transferring risks and relaxing credit management, relatively indifferent to loans overdue phenomenon, and lower the standard of automobile loan issuance to compete for the market. Even in violation of the relevant provisions to meet the unreasonable loan requirements of automobile dealers, resulting in the phenomenon of multiple loans for one household, vicious loans, invalid guarantees, etc., which has caused greater business risks to insurance companies that ultimately bear the loan risks. Third, the responsibilities of some car dealers are not clear. In the tripartite cooperation agreement of individual banks, insurance companies and dealers, the vehicle quality risk of the seller is not clear. Especially for operating buses, there are many additional equipment that have changed from the original car purchase contract, but because there are no clear terms to restrict them, once there is a quality problem, it will be a hidden danger of claim settlement. In addition, there is no unified operation mode in the cooperation among commercial banks, insurance companies and automobile dealers. In the automobile consumption loan business, the beneficiaries of collateral are commercial banks and insurance companies, and the margin ratio of automobile dealers is also different. With the development of automobile consumption loan business, the lack of unified "rules of the game" can easily lead to disorderly competition among industries. From the insurance company's point of view, when the performance risk exceeds the insurance company's risk tolerance, the insurance company must make corresponding adjustments. At present, the "three highs and two lows" such as high payout ratio, high loans overdue rate, high accident rate, low rate and low recovery success rate have become the fatal wounds of automobile consumption loan guarantee insurance. Because of this, various insurance companies in Suzhou finally gave up the "cake" of automobile loan performance insurance. Related hot words: insurance company car loan insurance

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