(Yicai Global) March 14 -- China Insurance Regulatory Commission has adjusted pricing scope for commercial car insurance across the country, which means consumers in selected areas can enjoy greater discounts.

CIRC announced the adjustments in the notice on adjusting self-determined pricing scope for commercial car insurance in selected cities. The changes cover provinces of Sichuan, Shanxi, Fujian, Shandong and Henan, as well as Xinjiang Uygur Autonomous Region.

Under the new pricing adjustments, Sichuan will enjoy the lowest insurance coefficient of variation for commercial car insurance. The calculation of commercial automobile insurance premiums is relatively complicated, and the self-determined coefficient is one of the factors that affect the insurance rate adjustment factor. 

To give an example from Beijing, if the self-determined coefficients and self-determined underwriting coefficients are 0.85, respectively, the commercial car insurance of a Nissan X-Trail valued at CNY240,000 (USD38,000) and used for six years is CNY5,456.91. If the self-determined coefficient drops to 0.75, the insurance cost can go down by CNY641.99.

CIRC said last June that it would further expand the self-determined pricing rights of insurance companies, cut the lower limit of the floating coefficient of commercial auto insurance rates, and further reduce the level of commercial auto insurance rates through market measures.