China's insurance industry is developing insurance products for new energy vehicles, with several insurers involved, local media reported.
Currently, China's traditional auto insurance still lacks products to cover and manage the risk of batteries in new energy vehicles.
According to the report, Ping An Property Insurance Company insiders believe that the risk of new energy vehicles is higher than that of traditional vehicles, mainly because new energy vehicles are used more frequently and their performance is different from that of traditional vehicles, resulting in a higher frequency of accidents than traditional vehicles.
In addition, new energy vehicles are subject to higher claims standards than traditional vehicles due to the presence of accessories such as batteries and motors.
The report quoted Pacific Insurance as saying that the biggest difference in risk between new energy vehicles and fuel-efficient vehicles is that the value of the batteries in new energy vehicles accounts for an extremely high proportion of the total vehicle value, and the risk of new energy vehicles is more related to the batteries they use.
China's October new energy vehicle sales double from same month last year
In addition, different types of batteries have different properties such as water and heat resistance, and the depreciation of power decay also varies greatly, which has an impact on the pricing of auto insurance.
According to the China Passenger Car Association (CPCA), China's wholesale passenger car sales in October were 2.107 million units, up 9.1 percent year-on-year and up 0.1 percent from the previous month.
Wholesale sales of new energy passenger vehicles in October were 144,000 units, up 119.8% year-on-year, and up 15.9% from the previous month. This was mainly due to new carmakers including NIO, Li Auto, and XPeng, along with new car sales growth from traditional carmakers, and a lower base last year.
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