Since 2001, there have been 3 rounds of deregulation in Chinese Motor insurance market. The first two rounds of deregulation loosed the limit of the floating premium of Motor insurance, giving insurance entities more flexibility in pricing based on the standard rate. In the third round deregulation starting from 2018, besides a more flexible floating rate based on the standard rate, insurance entities in Guangxi, Shaanxi and Qinghai were granted authority of autonomous pricing by CBIRC. This paper majors in the third round deregulation starting from the beginning of 2018, aiming to find the market condition of country level and especially in deregulation areas including Guangxi, Shaanxi and Qinghai with fully autonomous pricing. The market size, average premium per policy, discount factor and loss payment will be analyzed to find the effect of deregulation. The article uses DID estimation in the assessment of the effect of deregulation, using the data of both deregulation and non-deregulation areas. Deregulation is aimed at pushing the marketization of Motor insurance market, enhancing the diversification, improving services and finally providing better experience to consumers. In the end this paper also gives some suggestions to the deregulation based on the experience in the past and from other countries.
