General Insurance companies have faded out mortgage insurance

Trying to raise non-rate mortgage insurance fees for the final round of the General Insurance Company, after all difficult to carry surrender and the rise in the rate of decline of new single-volume pressure, to give up their mortgage insurance business. Two years ago Hongjiyishi mortgage insurance, or people will gradually fade out of sight.

Illegal operations sentiment Wan decline

Since 90% of the mortgage insurance sales through bank channels, the General Insurance companies paid to the bank charges into the level of mortgage insurance can affect the key to achieving profitability. In accordance with the requirements of the China Insurance Regulatory Commission, insurance companies paid to the bank charges the maximum rate is 15%. Informed sources said, "In fact, the risk to business, insurance companies, to the bank's basic fees are more than 15 per cent, the overall level of rates in the 15 to 20 percent, and some companies even to a rate of 30 percent or more. "

However, such irregularities, not to bring new hope that the mortgage insurance. Shanghai engaged in a mortgage insurance sales people said, "Now we do the business day it is very difficult to have two insurance policies, it is often the entrance of the company - the insured Paiqichanglong queuing policy of retreat that often."

According to the Shanghai Insurance Association statistics, this year, 1-6 month, more than 20 insurance companies in Shanghai's total mortgage insurance premium revenue for the -7441.65 million. Among them, there surrender the premium amount higher than the new single premiums, this inversion of the General Insurance Corporation premiums account for 60% of the total, the inversion of the General Insurance Corporation up to a total premium -2471.98 million. This premium inversion phenomenon in Inner Mongolia, northeast China, the Yangtze River Delta, the Pearl River Delta and other regions almost abound.

Unprofitable enterprises out insurance market

"Because no profit at all, the company will no longer be addressed to the mortgage insurance business indicators, that is, companies do not encourage mortgage insurance." Certain insurance companies said. Several interviewed by reporters the General Insurance companies have expressed interest faded out Compressed business mortgage insurance market.

In fact, the insurance itself, the payment rate is less than 10% of the mortgage insurance is a highly profitable insurance. 10% of the payment rate and the rate of 20 per cent of the fee a rough calculation, taking into account other costs, the comprehensive cost of mortgage insurance rates in only about 40 percent, far below the motor. It is hope to see profit, General Insurance Corporation to raise fees at the illegal manner for a final round.

However, the large area of the surrender of the mortgage insurance deadly blow. "Mortgage insurance to operate at least five years or more to be able to profit, but now most of the policyholders less than five years on prepayments." Property Insurance Company of a mortgage insurance official said, the various insurance companies in Shanghai this year's retreat Bao was mostly in 30 to 40 percent, and the surrender in all cases, the five-year period on prepayments surrender of the most concentrated, followed by 1-2 years surrender, and some even less than six months for retreat Bao. This means that most companies can only Property Insurance policyholders received less than five years of premiums, and do not break even line, but a one-time payment to the high bank charges has Fushuinanshou. On the other hand, due to shrinking sales of real estate, banking abolish mandatory sales of mortgage insurance, mortgage insurance premiums have continued to single new show negative growth, the overall profit margin showed negative Property Insurance Company is already stretched.

An insurance company to be listed on the people told reporters that the first half of a loss Dajuyiding auto insurance, mortgage insurance premiums inversion occurred, the company's full-year earnings to increase pressure, in order not to affect the company's performance, Tingdiao with high profitability of the Mortgage insurance is a foregone conclusion.