Tramway news: Recently, the State Administration of Market Supervision officially approved the "BYD Insurance Brokerage Co., Ltd.", BYD's ambition to enter insurance is self-evident. Previously, BYD had also released recruitment information for a number of insurance positions, including vice president, operation director, compliance director, compliance manager, financial director, product manager, insurance claims specialist and other positions of insurance brokerage companies.
Entering the insurance intermediary business, there are Tesla and Weilai in the front, and BYD in the back, and the targets are all new energy vehicle insurance. A senior person in the property insurance industry analyzed that "BYD's layout of brokerage licenses is more worthy of attention than Weilai, because BYD is the intersection of traditional car companies and new energy car companies." This means that both new energy vehicle companies and traditional car companies are looking forward to winning their own licenses to achieve the opening of sales models and car insurance service packages, and then create a closed loop of services. ”
It is not uncommon for car companies to set up insurance companies. As early as 2012, the Insurance Regulatory Commission issued a document to encourage and support automobile enterprises to fund the establishment of insurance agencies and insurance brokerage companies, or to cooperate with existing insurance agents and insurance brokerage companies, and to carry out automobile insurance business as a whole by insurance agents and insurance brokerage companies, and to promote the professional operation of automobile agency insurance business.
As early as 2011, GAC Group led the establishment of Zhongcheng Automobile Insurance, and in 2012, China FAW also initiated the establishment of Xinan Automobile Insurance, and traditional car companies such as SAIC, Geely, Dongfeng, Great Wall, Changan, and BAIC have participated in the insurance market to varying degrees.
However, from the current way of traditional car companies involved in insurance, most of them are carried out through the establishment of insurance intermediaries, which will definitely involve the conflict between automobile risk data and customer data, and has not brought an essential major impact to the market.
With the large-scale development of new energy vehicles, the insurance market has also undergone some changes. The "Exclusive Clauses for Commercial Insurance for New Energy Vehicles (Trial)" was officially launched, making it clear that new energy vehicles no longer use traditional commercial auto insurance clauses, but have exclusive insurance products and insurance products. The insurance clause has made a special protection statement for the battery, motor, electronic control and other components exclusive to new energy vehicles. All new energy vehicles are required to be insured with exclusive insurance for new energy vehicles.
For car companies, getting involved in the new energy insurance business at this time can be said to be a double eagle with one stone. One is that you can "divide" the insurance money with the insurance company, and the other is to make your car and the customer more closely connected.
According to an industry estimate, assuming that Tesla's sales maintain a compound annual growth rate of 31% until 2030, annual sales can reach 11.52 million by 2030. According to the assumption of the neutral situation, Tesla can achieve a global ownership of 60.46 million vehicles in 2030, if Tesla's insurance product coverage can reach 70%, the average annual premium per vehicle is 4800 yuan, then the car insurance business can achieve revenue of 203.1 billion yuan.
With the support of government subsidies and free licenses, in recent years, the ownership and sales of new energy vehicles in new energy countries in the mainland have shown a rapid growth trend, and the growth rate is much higher than that of traditional fuel vehicles. At the same time, the penetration rate of new energy vehicles (that is, the proportion of new energy vehicle sales in total automobile sales) is also increasing, and the penetration rate in 2021 has reached 13.4%, but there is still some room for growth with the target of 20% penetration rate of 20% in 2025 set in the "New Energy Vehicle Industry Development Plan (2021-2035)" issued by the State Council. Under the joint catalyst of policy support, technological maturity, consumer psychology, infrastructure and other factors, penetration growth is expected to continue to accelerate.
From 2013 to 2020, the number of new energy vehicle insurance coverage continued from 140,000 to 4.92 million, with a compound annual growth rate of 56%, and the scale of new energy vehicle insurance premiums increased from 1.16 billion yuan to 24.6 billion yuan, with a compound annual growth rate of 46.5%. In the future, with the accelerated expansion of the new energy vehicle market, the market demand for new energy vehicle insurance to be developed is huge.
From the perspective of customer service, the current new energy captive insurance online, the premium has risen significantly, the latest data show that the new energy vehicle premium is 21% more than the same level of fuel vehicle premium, although the charging of new energy vehicles than the refueling of traditional cars is lower cost, but the rise in premiums will undoubtedly increase the cost of consumers.
The advantage of car companies entering insurance services is that they can have a more accurate premium calculation method, which is more friendly to car owners with good driving habits. At the end of September 2021, Tesla FSD Beta 10.1 was launched, and the insurance calculator has been bound to launch. Tesla uses in-car sensors to collect driver behavior data and then converts the collected data into a safety score between 0 and 100, and the higher score means safer driving habits and less likely to have accidents, so it gets a lower car insurance price.
As the largest new energy vehicle company in China, BYD's sales volume has long ranked first in the domestic new energy vehicle sales list, and entering the insurance market is beneficial to itself and consumers.
With the strength of technology research and development and innovation, BYD New Energy Vehicle has mastered the core technologies of new energy vehicles such as batteries, motors, and electronic controls. At present, BYD new energy vehicles have formed two major product lines of passenger cars and commercial vehicles, covering seven conventional areas and four special areas, achieving full field coverage.
Combined with technology and sales, BYD can be said to have a strong competitive advantage in the automotive field. And it is precisely this advantage that may be where BYD's entry into the insurance industry lies.