On December 14, the China Insurance Industry Association issued the long-awaited "Exclusive Clauses for Commercial Insurance of New Energy Vehicles (Trial)", which switches the time according to the rate of the new energy vehicle commercial insurance model clauses, and in the future, all new and renewed new energy vehicles will be uniformly insured by this clause, and the "Model Clauses for Motor Vehicle Commercial Insurance of the China Insurance Industry Association (2020 Edition)" will no longer be applicable.
Damage to the self-use charging pile is compensable
The relevant person in charge of the China Insurance Industry Association said that the "Provisions" provide more effective and targeted insurance protection for consumers of new energy vehicles. In terms of insurance liability, it not only provides protection for the "three electricity" system, but also comprehensively covers the use scenarios of new energy vehicles driving, parking, charging and operation. In the development of terms, it not only considers the current mainstream technology route, but also leaves room for innovation in the new format of the new energy automobile industry.
In terms of diversified insurance scenarios, the "Clauses" combine the characteristics of charging new energy vehicles to develop "Self-use Charging Pile Loss Insurance" and "Self-use Charging Pile Liability Insurance", which not only covers the loss of the vehicle, but also includes the loss of auxiliary equipment such as charging piles and the property losses and personal injuries that may be caused by the equipment itself; and focuses on solving the risks caused by auxiliary facilities in the application of new technologies. This is the first time that auto insurance has underwritten external fixed auxiliary equipment, which is an innovation and exploration in the field of auto insurance.
In terms of the insurance liability that attracts the most attention, the "Clauses" highlight the structural characteristics of the "three electricity" system of new energy vehicles in a columnar manner, and at the same time expand the scope of protection to vehicle-specific use scenarios, such as self-service charging, special vehicle engineering operations, etc., upgrade and optimize the connotation and extension of traditional car insurance, and enhance the applicability and pertinence of the clauses; the "Clauses" also combine the risks in the charging process of new energy vehicles to design the "Additional External Grid Fault Loss Insurance" to underwrite the transmission and transformation failures of the external power grid. Vehicle losses caused by abnormal current and voltage are spread through an insurance mechanism.
Data limited impact pricing underwriting
What annoys many new energy car owners is that new energy vehicles for sale can only follow the fuel vehicle insurance clauses, some of which do not apply to new energy vehicles, and claim dispute cases often occur.
In April this year, there was an online news that Ping An Property & Casualty refused to insure Tesla's new car in some provinces and cities, and the relevant plan for renewal of insurance began to tighten. Although this rumor was subsequently debunked by the company, the exclusive car insurance supporting domestic new energy vehicles has aroused the concerns of some vehicle users.
It is understood that a major problem plaguing the claims of new energy vehicle owners is the power battery, and the liability risk caused by battery damage is not included in the car damage insurance protection liability. Once such an accident occurs, the phenomenon of difficulty in determining damage and settling claims will become a common problem that plagues car owners and insurance companies, and the industry has been calling for the introduction of exclusive insurance clauses for new energy vehicles.
The relevant person in charge of the Banking and Insurance Regulatory Commission has publicly explained that in the actual operation process, the new energy vehicle has a greater difference from the traditional car in terms of body structure, power system, use scenarios, maintenance and other aspects, and its risk characteristics and accident causes also show certain particularities. New energy vehicles are affected by factors such as small overall ownership, rapid iteration of models, short industrialization time, and potential risks that have not been fully revealed, and the industry has limited data on underwriting claims for new energy vehicles, which affects the calculation of premiums.
Infographic (picture and text independent)
Property insurance companies usher in a new "battlefield"
It is understood that many large domestic insurance companies have long begun to design captive insurance for the development of new energy vehicles or are implementing related plans, and related new energy vehicle insurance products have been "on the road". With the release of exclusive terms for new energy vehicle insurance, related products are also expected to accelerate the landing.
The team of Liu Xinqi, a non-bank of the People's Republic of China, believes that from the perspective of research, it is expected that the benchmark premium of new energy vehicles under the "Provisions" will decrease slightly compared with the benchmark premium of the current comprehensive reform, and the specific insurance liability of new energy vehicles has increased, so the implementation of the new regulations will have a slight negative impact on the premiums and profits of property insurance companies, but the overall impact is limited.
iResearch consulting report shows that overall, in the current auto insurance industry stock competition, operating profits are meager, new energy exclusive auto insurance undoubtedly opened a new incremental market. For insurance companies, new energy exclusive car insurance helps to price more accurately, thereby alleviating the pressure of compensation and improving operating profits; for consumers, new energy exclusive car insurance fills the pain points of insufficient protection of traditional car insurance, helps to eliminate consumers' doubts about car purchase and improve consumers' car experience.
In the view of practitioners, property insurance companies are expected to usher in a new "battlefield" of new energy vehicle insurance, and with the continuous increase in the ownership of new energy vehicles, the scale of the new energy exclusive car insurance market is also expected to expand. In addition to the fierce competition of traditional fuel vehicle insurance, the birth of new energy exclusive car insurance is expected to open up new business growth space for property insurance companies.
However, Shenwan Hongyuan insurance industry analyst Ge Yuxiang frankly said that the current loss rate of new energy vehicle insurance is close to 85% on average, and the industry is facing greater underwriting loss pressure. Due to the poor pricing ability and weak customer screening ability of small and medium-sized companies, the comprehensive cost ratio of new energy vehicle insurance generally exceeds 110%; the head company basically maintains underwriting breakeven by virtue of its natural advantages in pricing, customer reserves and manufacturer cooperation capabilities. Ge Yuxiang expects that with the continuous deepening of the comprehensive reform of automobile insurance and the continuous improvement of the price-fee linkage mechanism, the competitive advantage of the head enterprise is expected to further emerge.
Image source: Xinhua News Agency
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