20150612-JEFFERIES-中国财险（2328）：AUTO_INSURANCE_REFORM_UPDATES_–_EXPECT_SMOOTH_TRANSITION-301564

The trial program for commercial auto insurance reform was launched recently. In this report，we recap and analyze the key elements of the reform，and believe that the transition is likely to be smooth.In addition，underwriting performance of mid-sized P&C insurers in 2014 was recorded at only 103%，showing limited capacity for aggressive competition.Hence，we reiterate our positive view on PICC P&C.