Friday, 20 November 2015

Thatcham confirms partnership with CATARC

Thatcham Research has confirmed a partnership with CATARC, the China Automotive Technology and Research Centre, to enable the introduction of a vehicle insurance rating scheme into China.

Funded by UK insurers, one of Thatcham’s keyresponsibilities is in administering the insurance Group Rating system onbehalf of the ABI (Association of British Insurers). The newly signed agreementwith CATARC will call upon Thatcham’s extensive experience in this area withthe ultimate aim of developing and introducing a similar system in the Chinesemarket.

With over 120 million passenger cars on the road, the taskof providing an effective insurance system in China is an enormouschallenge. The motor insurance market is currently undergoing structuralchange, moving away from the market level pricing tariffs which are common inAsia, towards individual risk assessment by insurers. This provides anopportunity for CATARC, working with Thatcham, to help provide a workablesolution.

CATARC are well established in China, employing over 3,000people across seven different locations and boasting world leading vehicleresearch facilities including a new 300,000 square metre Technology andResearch Centre in Tianjin, alongside more than 60km of test track.

As part of the wide ranging new agreement, Thatcham willalso provide consultancy services including vehicle inspection, assessment andtraining expertise, as well as ongoing support in developing an appropriaterisk rating formula that could effectively operate in the region.

Neale Phillips, strategy & development director atThatcham Research said, ‘If you want to manage vehicle risk, you first need aclear understanding of the different factors that can have an influence. Thesheer number of trim variations even on the same basic vehicle can be enormousand all need to be factored in.’

Materials used in construction, the cost of replacementparts, crash performance, security levels and the fitment or otherwise of lifesaving driver assistance technology can all vary widely, often dependent on theterritory into which the vehicle is sold.

‘Understanding and administering vehicle rating is a complexbusiness, but has some very clear advantages if you can get it right. We’reseeing increasing interest in the way the UK runs its Group Rating system andthe new agreement with CATARC is further evidence of how Thatcham expertise inthis area is in high demand overseas,’ added Phillips.