Taxi premiums have been increased year after year, and the industry has been complaining. The insurance industry blamed the high accident rate of taxis and serious litigation problems.
Some taxi industry disclosed to "Hong Kong 01" that Taiga Insurance, which mainly provided taxi insurance in the past, recently notified the taxi industry that the company would no longer accept new orders.
According to industry estimates, Taijia’s current contractor of more than 10,000 taxis is affected, with a market share of 60%. It is worried that if Taijia suspends underwriting, it will hit the taxi industry and public transport services. It requires the Insurance Regulatory Bureau and the government to intervene to ensure There are enough taxis to provide services in Hong Kong.
When Taiga Insurance responded to the inquiry of "Hong Kong 01", it confirmed that it would suspend the acceptance of new policies that are transferred from other insurance companies from last Thursday (October 28), but emphasized that it will continue to provide services and renewal for existing policyholders. Save.
The Insurance Regulatory Authority replied that there are currently eight insurance companies in the market undertaking taxi insurance business, and it does not comment on the operation strategies of individual companies.
The Transport and Housing Bureau also stated that it will continue to maintain close communication with the taxi industry and pay close attention to the industry's purchase of auto insurance.
Wu Kuncheng, the permanent president and chairman of the Taxi Dealers Association, said that recently it has received many complaints from the industry that Taijia Insurance has suddenly notified that it will no longer undertake new insurance policies.
He pointed out that there are currently about 18,000 taxis in Hong Kong, and more than 60% of the insurance policies are underwritten by Taiga Insurance, that is, about 10,000 taxis.
He said that in the future, about 3,000 taxis will need to be exchanged. If Taiga suddenly decides to refuse underwriting without prior notice, it will have a great impact on the taxi industry and passenger transport. The industry is frozen."
Wu also pointed out that the incident involved business ethics. He believed that the Insurance Regulatory Bureau and relevant government departments needed to step in and follow up. "It's not (insurance companies) just don't do it. The industry is shocked, taxis operate without insurance points? How does the industry operate? ?" He was worried that a business decision made by Taiga would hamper the development of the entire taxi industry at any time.
Zheng Minyi, executive director of Loyalty Cars, pointed out that after the news of Taijia’s suspension of taxi car insurance policy came out, he immediately contacted the China Insurance Regulatory Bureau and Taijia Insurance, but has not received a reply.
She said that even though there are other insurance companies in Hong Kong that undertake taxi insurance policies, the amount is very small.
Taxis are one of the main public transport modes in Hong Kong. The government needs to step in and understand, otherwise, in the worst case, there may not be enough taxis on the streets.
Taiga: Suspend the renewal of insurance for existing taxi customers from other insurance companies
In response to "Hong Kong 01", Taijia Insurance stated that from October 28, it has suspended the taxi business that has been transferred from other insurance companies, but will continue to provide services to existing policyholders.
Taijia explained that compared with the same period in 2020, it has insured an additional 1,300 taxis in 2021, with a market share of over 60%. Under the premise of strict risk control, the company has decided to suspend accepting transfers from other insurance companies until further notice.
Taijia also emphasized that it will provide existing taxi customers with renewal in accordance with the underwriting and charging policies, as well as the risk assessment of individual customers, and take care of the insurance needs of existing customers.
Looking at the interim report of Taijia Insurance Company this year, the premium income of taxi insurance business accounted for 47.3% of Taijia Insurance's total income, and the taxi compensation rate was 65.3%.
However, for the same period in 2020, Taijia Insurance’s loss rate was 102.4%, which means it has been “convexed”, while the taxi insurance loss rate in 2019 was even 151.8%.
According to the China Insurance Regulatory Commission, there are eight insurance companies in the market undertaking taxi business.
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China Insurance Regulatory Commission: There are 8 insurance companies in the market undertaking taxi insurance
According to the IA, there are eight insurance companies in the market undertaking taxi business. They will not comment on the operation strategies of individual companies. They only mean that insurance companies must make underwriting decisions and determine premiums based on commercial principles. The main considerations include accident rate and Severity, past claims history, etc.
The IA stated that it will continue to maintain close communication and cooperation with all stakeholders to implement measures to reduce the taxi accident rate from the source.
The Transport and Housing Bureau also stated that it will continue to maintain close communication with the taxi industry, pay close attention to the industry's purchase of car insurance, and encourage taxi drivers to pay attention to driving safety, maintain good driving records, and reduce the occurrence of traffic accidents at the source.
Chen Jianbo: Don’t do individual tightening sometimes
Chen Jianbo, a member of the Legislative Council of the insurance industry, pointed out that after learning from Taijia Insurance, its underwriting requirements are stricter, and insurance companies have their own risk management requirements.
He said that he had learned about the situation with the China Insurance Regulatory Commission. The other party pointed out that there are still other insurance companies in the market that provide taxi insurance. Several insurance companies are trying to install driving recorders for hundreds of taxi customers and put the videos on the cloud in real time. The insurance industry is also requesting taxi drivers to obtain a certificate of good driving record from the Transport Department, hoping to take measures. After full implementation, insurance premiums can be reduced.
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