Recently, six property insurance companies in Suzhou jointly issued an announcement to suspend the handling of motor vehicle consumer loan guarantee insurance business. Guangzhou, Shenzhen, Shanghai, Beijing, Wuxi and other cities 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. In the past, the policies issued by various insurance companies will be fulfilled as usual. As for when to resume business, there is no clear timetable at present. Car loan insurance stop: where is the root cause? Reason one: the high default rate of loans scares away the 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 yet been established, and there is a lack of credit rating supervision and punishment mechanism for untrustworthy people. Some consumers' credit concept is indifferent, and moral hazard is increasingly prominent. Moreover, cars are different from buildings such as real estate, easy to hide and move, difficult to preserve as collateral, and very difficult to control moral hazard. It is common for car buyers to pay back money without urging, and it is common to urge and delay. Man-made moral hazard has become the biggest risk faced by insurance companies. At the same time, there are also some inevitable institutional 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 a fixed annual depreciation rate, the value of the mortgage car is likely to be difficult to offset the debts owed. When the new car's cost performance exceeds the loan vehicle, it may affect the borrower's willingness to repay the loan. 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 a new car. If the bank can't get the repayment, it can ask the insurance company for compensation. If the insurance company with subrogation right can't get the debt back, it can only stare at the worthless car. 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, high agency fee returns and stubborn rebates have seriously affected the income level of insurance companies. Although according to the regulations of the CIRC, the commission that insurance agents can get is 8% of the premium received, in order to seize the market, some insurance companies actually refund insurance agents more than this limit, and some even reach 20%-30%. On the other hand, insurance companies are under increasing pressure to pay compensation. In the automobile consumer credit guarantee insurance business, insurance companies bear the guarantee risk, but some insurance companies operate irregularly, and even entrust merchants or banks to issue guarantee policies, which makes it difficult to investigate and audit the credit status of credit targets, which is an important reason for the increase in claims risk. At the same time, due to the information asymmetry between the insured and the insured, there is no tracking system for the claims information of the insured, and some high-risk insured can move freely, making the high-risk clauses formulated by insurance companies useless. There are three reasons: the rights and responsibilities of various entities are not equal. First, the bank's obligations are unclear, and the credit management subjects offset each other. Many banks don't understand the connotation of performance bond insurance accurately, and they don't pay enough attention to the exemption clauses of insurance companies. They think that the automobile consumption loan is provided by the insurance company, and the borrower will not be compensated by the insurance company when it expires, so there is no risk for the bank. 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 should have been done by banks, but now it is basically operated by insurance companies. According to the survey of insurance companies, the bank concluded that all car buyers agreed by the insured companies to cover loan performance insurance are almost "responsive" and rarely conduct on-the-spot verification on the borrower's 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 insurance companies underwriting loan performance insurance is to compete for the new car insurance market locked by performance insurance. Due to fierce competition in the insurance market, insurance companies, in order to expand their market share of motor vehicle insurance, do not hesitate to relax the examination of borrowers' qualifications for taking out performance insurance for automobile consumption loans, 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 multiple loans for one household, vicious loans, invalid guarantees and other phenomena. This has caused greater operational risks to the insurance company that ultimately bears the loan risk. Third, the responsibilities of some car dealers are not clear. In the tripartite cooperation agreement of individual banks, insurance companies and dealers, the seller's vehicle quality risk is not clear. Especially for operating buses, many additional equipments are 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 for 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 auto loan performance insurance. Related hot words: insurance company car loan insurance

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