New energy exclusive car insurance listed "model price 250,000" or into a premium floating watershed| Nancai Insurance evaluation

Southern Finance and Economics all-media reporter Sun Shihui Shanghai report On December 27, the Shanghai Insurance Exchange officially launched the new energy vehicle insurance trading platform, the first batch of new energy vehicle exclusive insurance products of 12 property insurance companies listed picced to P&C, Ping An P&C, and CPIC Property & Casualty.

Industry insiders believe that the listing of new energy exclusive car insurance will bring new opportunities to auto insurance and help insurance companies achieve accurate pricing. It is worth mentioning that the 21st Century Business Herald reporter found that the new energy exclusive car insurance "model price of 250,000" has become a floating watershed for premiums.

"3 main insurance + 13 additional insurance"

At 00:00 on December 27, 2021, Chinese Insurance successfully signed out the new energy vehicle insurance policy, becoming one of the first companies in the industry to use the new terms to underwrite the new energy vehicle insurance business.

On December 14, the China Insurance Association officially issued the Exclusive Clauses for Commercial Insurance of New Energy Vehicles of the China Insurance Industry Association (Trial Implementation) (hereinafter referred to as the "Clauses").

The "Provisions" provide a guarantee for the "three electric" system (batteries, motors and electronic controls of electric vehicles), and comprehensively cover the use scenarios of new energy vehicles driving, parking, charging and operation. The release of the "Provisions" fills the gap in the new energy vehicle insurance specifications, and includes the risks of batteries, spontaneous combustion, and charging that have attracted much attention.

With the release of the terms, a number of insurance companies launched new energy exclusive car insurance today. The 21st Century Business Herald reporter summarized a variety of new energy exclusive car insurance listed today and found that exclusive car insurance mainly added two parts of the clause.

The first is to clarify that the three electric systems (batteries, electromechanical, electronic control) belong to the insurance liability of vehicle damage insurance, and comprehensively cover the scenes of driving, parking, charging and operation at the use level.

Second, in view of the unique risks of new energy vehicles, additional risk protection such as the loss of self-use charging piles and the loss of external power grid failures has been increased.

Specific provisions include "3 main insurance + 13 additional insurances", which can insure the direct loss of all equipment at the factory such as the body, battery and energy storage system, motor and drive system, and other control systems caused by natural disasters and accidents (including fire and combustion); vehicle loss caused by external grid failure; self-use charging pile loss and third-party liability caused by self-use charging pile.

It is worth noting that the commercial auto insurance clause was introduced this time, and there was no change in compulsory traffic insurance. Covered models include plug-in hybrid (with range extender) vehicles, pure electric vehicles and fuel cell vehicles.

Premium increase or decrease a few joys and a few sorrows 250,000 into a "watershed"

The launch of new energy exclusive car insurance for consumers, the most concerned thing is the increase or decrease of premiums.

It could be noted that the model clauses included an increase in depreciation rates. Compared with the 0.6% depreciation rate of traditional car insurance, according to the fuel type, the depreciation rate of new energy vehicle insurance is divided into two gears: pure electric vehicle, plug-in hybrid and fuel cell vehicle.

Among them, the depreciation of pure electric vehicles is significantly higher than that of other models, and the lower the price, the faster the depreciation. The faster the depreciation, the faster the sum insured will fall, and the less compensation will be paid in the case of total loss. To ensure that the sum insured covers the risk, the rate is likely to increase with it.

Previously, the China Association of Actuaries released the benchmark pure risk premium table of new energy vehicle commercial insurance, showing that the benchmark premium was basically flat. From the perspective of the premium calculation formula, the benchmark premium = benchmark pure risk premium / (1 - additional expense rate), the additional cost rate of new energy vehicle insurance has decreased from 25% of traditional fuel vehicles to 15%, and the benchmark premium has decreased slightly compared with the current comprehensive reform of the three insurances and car damage insurance as a whole, which has increased compared with the previous round of measurement results (the last round of testing decreased by 6.2%), and the proportion of overall premium increase policies has increased from 18.3% in the previous round of testing to 20.7%, and nearly 80% of the policy benchmark premium has decreased.

Total car insurance premium = benchmark premium * no indemnity preferential coefficient * traffic violation coefficient * autonomous pricing coefficient, the relevant industry insiders believe that the independent pricing system (0.65-1.35) is the key to the pricing difference.

Although the benchmark premium of 80% of the policy has declined, the implementation of the last three coefficients of the premium formula is still reflected in the consumer.

"The premiums of some models have declined, and the premiums of most electric vehicle models with a price of more than 250,000 have increased compared with the previous price." Xiao Fan, the housekeeper of PICC car insurance, told the 21st Century Business Herald reporter.

In China, CPIC's 250,000 has also become a "watershed", "the three liability insurance is consistent with the current rate framework, and the relative difference rate between the levels under each dimension is unchanged, and the change of each vehicle type is also small." The vehicle damage insurance is close to the framework of the three liability insurance, and the calculation takes special consideration of the affordability of the owner of the price-sensitive stock new energy vehicle, and restricts the price of the car below 250,000 yuan without increasing the fee. China Pacific Insurance Company said.

The increase in the rate is mainly to take into account the risk probability and compensation of new energy vehicles, and the existing new energy vehicles have a higher level of risk, so the rate will be correspondingly higher. Relevant industry insiders believe that even if the difference between the purchase price and the subsidy price is cancelled in the future, the price of new energy vehicle insurance will still be higher than that of the same grade of fuel vehicles, coupled with additional insurance such as charging piles, the price should not fall too fast in the short term.

In fact, because the frequency and loss rate of new energy vehicles are higher than those of traditional fuel vehicles, and the traditional model products are used, insurance companies generally do not have a strong willingness to underwrite, which is not conducive to the long-term development of the auto insurance industry in the long run.

The cost structure of new energy vehicles and traditional fuel vehicles is very different, so there are great changes in the risk structure and risk cost of new energy vehicles. The core power system of new energy vehicles is composed of batteries, motors and electronic controls, which replace the engine, transmission and other devices of fuel vehicles, so the protection of the core components of traditional car insurance on automobiles is not suitable for new energy vehicles; in addition, the scope of liability in the terms of traditional car insurance cannot cover the specific risk factors faced by new energy vehicles, including battery failure, charging fault liability, etc., so it will be difficult for new energy owners to claim after the risk occurs.

iResearch believes that in the current context of fierce competition in the auto insurance industry and meager operating profits, new energy exclusive auto insurance has undoubtedly opened up 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.

CPIC said that before the launch of new energy exclusive car insurance, the underwriting and claims affairs of new energy vehicles and fuel vehicles lacked rules and practices for refined management, and the insurance experience data precipitation was not sufficient, and the insurance rate and loss rate of new energy vehicles were still significantly higher than those of traditional fuel vehicles in the short term. However, with the accumulation of exclusive products in the expanding market, claims technology will be rapidly iterated and upgraded, and practices such as refined management of underwriting pricing will promote the return of the loss rate of new energy vehicles to a reasonable level in the long run.