At the end of last year, Taiga Insurance, a leading company in the taxi insurance industry, began to send letters to taxi owners, notifying that the insurance will be terminated after seven days. As of the early morning of last Friday (7th), there were taxis one after another because there were no valid and in line with the regulations. Injury and casualty liability insurance, so it was unable to drive on the road.
In order to ensure the stable operation of the market and avoid any impact on the taxi industry and the public, the Insurance Authority has contacted the Hong Kong Federation of Insurers and other insurance companies to formulate a remedial plan. The four companies of Wing Lung Insurance agreed to provide the affected insured car owners with a 30-day mortgage plan to prevent taxis from suddenly failing to operate legally due to the cancellation of the insurance policy. However, the incident did not end there, and even began to show signs of further deterioration.
The insurance industry is considering requiring drivers to obtain a certificate of good driving record from the Transport Department.
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Theoretically, taxi insurance costs are not only high, but also increase the price every year, which should have its market value, but for a long time, even though there are more than 50 licensed insurance companies in Hong Kong, only less than ten of them are willing to accept taxis. insurance.
The reason behind this is not unrelated to the fact that the underwriting profit of the taxi comprehensive insurance business has been falling in the past five years. The related field even recorded losses in 2017. Even if the situation improved in 2020, it still lost a total of more than 40 million yuan; From 2005 to 2020, insurance companies recorded losses in the taxi insurance business for 11 years, reflecting the uncertain outlook of the taxi insurance market.
Another reason is that the number of traffic accidents involving taxis in Hong Kong is extremely high every year, and it is the vehicle type with the second highest accident rate in Hong Kong.
What's more serious is that taxi drivers who have been driving for many years directly accused some people of abusing insurance in the industry, and even conspired with familiar lawyers to claim large sums of money. Under the vicious circle, insurance premiums are increasing day by day...
For details, please read the 299th issue of "Hong Kong 01" Electronic Weekly Newsletter (January 10, 2022) "
The Breaking Point of Taxi Industry Structural Problems: Leading the Industry with Human Resources
".
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