The nationwide unified compulsory traffic insurance (CTI) rate for the same model will be changed. It was learned that the CIRC has allowed Jiangsu region to implement a regional differential rate reform pilot program of CTI. Insurance experts pointed out that during the trial period, Jiangsu would set its own prices and the CTI rates for models with high claims ratios are expected to rise. Industry insiders said that this is an effective way to break the "curse" of annual losses in CTI. "For the same model, such as Santana 2000, if the accident rate is high in Jiangsu, the premium will be higher, while the accident rate is low in Hebei and the premium may be lower," the above-mentioned insurance expert explained about the future promotion prospects of self-pricing of CTI in Jiangsu region. In response, the CIRC said that the pilot aims to further explore and improve the CTI rate formation mechanism, so as to reasonably match the CTI rate level and risk. Since 2006, CTI has implemented a unified liability limit across the country, including death and disability compensation limit, medical expenses compensation limit, property damage compensation limit, etc. "There are 42 models with separate rates, but the rate for each model is uniformly implemented across the country." Relevant persons from the CIRC introduced that in the implementation process, due to different execution strengths in various places, there are significant differences in earned premiums, accident rates, claims ratios, and profit and loss differences. Due to the persistently high claims ratio of CTI in developed areas, it has led to continuous losses in CTI business of insurance companies. Statistics show that in 2009 alone, the operation of CTI incurred a loss of 2.9 billion yuan. The fact that CTI incurs losses year after year has become indisputable, and rumors of price increases have been circulating repeatedly. In response, insurance experts analyzed that CTI price increase would not be carried out rashly, and could only start with pilots. Regarding the self-pricing pilot in Jiangsu region, the above-mentioned person in charge of the CIRC introduced that there is currently no specific pricing plan, and it is still in the stage of investigation and calculation. It is understood that the pilot of regional differentiated rates will adjust the basic rates for different models, and will not change the previous floating rate mechanism of CTI. For example, vehicles that do not have accidents for 1 year, 2 years, and 3 years (including more than 3 years) will still enjoy discounts of 10%, 20%, and 30% respectively on their premiums. Taking a current base premium of 950 yuan for a motor vehicle as an example, if it rises by 10%, the rate will be 1045 yuan. It was also learned from relevant channels that after the smooth progress of the self-pricing pilot of CTI, in addition to the implementation of differentiated rates in provinces and cities, there might also be different rates within the same province or city due to differences in claims ratios and income status. In addition, motorcycles, which were previously refused by insurance companies due to low rates and high accident rates, could solve this problem through rate increases. "Since some rates are increased, others are decreased. Models with low accident rates and claims ratios might have cheaper premiums." A person from the China Insurance Association explained.