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Following Tesla and Weilai, new energy vehicle giant BYD has also entered the insurance industry!
According to Tianyancha information, on March 25, BYD Insurance Brokerage Co., Ltd. was established in Shenzhen with a registered capital of 50 million yuan, and the company is wholly owned by BYD Automobile Industry Co., Ltd.
What is the intention of large car companies to target this industry? What kind of blessings will their entry bring to new energy vehicle owners?
BYD "has been planning for a long time"
According to the information of Tianyancha, the legal representative and chairman of BYD Insurance Brokerage Co., Ltd. is Zhou Yalin.
According to public information, Zhou Yalin joined BYD in 1999 and is currently the chief accountant of BYD Co., Ltd., and serves as the financial director of BYD Electronics (International) Co., Ltd., the director of Shenzhen BYD Electric Vehicle Investment Co., Ltd., the supervisor of Shenzhen BYD International Financial Leasing Co., Ltd., and the director of BYD Auto Finance Co., Ltd.
The soldiers and horses did not move, and the talents went first. Previously, BYD has released recruitment information for relevant insurance positions on the Liepin platform, including vice presidents of insurance brokerage companies, product managers, operation directors/managers and other positions.
In fact, this is not the first time THATD has ventured into the insurance field. As early as 2018, BYD officially proposed that it would launch a UBI insurance service (usage-based insurance, an insurance based on the amount of use to determine premiums) to achieve personalized pricing of premiums.
According to tianyancha information, in November 2021, BYD established Guiyang BYD Shengshi Xinjing Automobile Sales Service Co., Ltd., which has a registered capital of 20 million yuan and its business scope includes insurance agency and other businesses. However, from the perspective of the company's attributes, it is more likely to belong to a part-time insurance agency.
However, it is not difficult to see that the layout of the insurance business has long been in BYD's business plan. The establishment of BYD Insurance Brokerage is a key step in its entry into the insurance industry.
"It is very normal for car companies to enter the insurance industry, and when automakers develop to a certain scale, they will have the idea of opening up upstream and downstream and expanding their business to more segmented areas." The relevant person in charge of a property insurance company said that in BYD's future ecological layout, it may launch relevant warranty, service and other packaging services to replace the conventional car damage insurance protection.
Why are car companies optimistic about the insurance business
BYD is not the first car company to set up an insurance brokerage company, Tesla and Nio have already entered the game.
According to the information of Tianyancha, in January 2022, WEILAI Insurance Brokerage Co., Ltd. was established in Hefei, Anhui Province, with a registered capital of 50 million yuan, which was wholly owned by NIO Holdings Co., Ltd.
Earlier, in August 2020, Tesla registered Tesla Insurance Brokerage Co., Ltd. in the Shanghai Free Trade Zone, with a registered capital of 50 million yuan, wholly owned by Tesla Motors Hong Kong Co., Ltd.
In addition, Xiaopeng Automobile also registered and established Guangzhou Xiaopeng Automobile Insurance Agency Co., Ltd. in July 2018. Traditional car companies such as GAC Group, SAIC Motor Group and Geely Holdings have successfully entered the insurance industry.
Why are car companies optimistic about the insurance business? This is because, as an insurance business in the automotive aftermarket, it is an important starting point for the construction of the automotive enterprise ecosystem.
So, what are the advantages of car companies in laying out the insurance industry? Shenwan Hongyuan analysis believes that car companies have three main advantages in the new energy auto insurance market:
One of the advantages is that new energy vehicle companies can simplify the new energy vehicle claim process. At this stage, insurance companies lack new energy vehicle loss determination talents, and they cannot carry out on-site loss determination after the accident, and new energy vehicle companies need to intervene in testing to determine loss claims. Car companies can rely on technical advantages to improve the efficiency of the entire car insurance claims process.
The second advantage is that car companies can design innovative car insurance products that better match risk and claims. With the information advantages of travel big data and intelligent driving of underwritten vehicles, car companies can jointly launch personalized insurance products with insurance companies in the future.
The third advantage is reflected in the monopoly of new energy vehicle companies on the sales of new energy vehicles. The rise of the direct-operated automobile model of new energy vehicles has made car companies directly contact the buyers of new energy vehicle insurance, so as to directly obtain the information of car owners who purchase new energy vehicle insurance.
The change of new energy vehicle insurance rates will be more accurate
New energy vehicle companies enter the insurance industry, and the topic that new energy car owners are most concerned about is what impact will it have on the premium of new energy vehicle insurance?
In recent years, with the rapid development of new energy vehicles, the overall loss rate of new energy vehicles is higher than that of traditional fuel vehicles. In order to distinguish the auto insurance clauses of new energy vehicles and fuel vehicles, at the end of 2021, the China Insurance Industry Association announced the "Exclusive Clauses for Commercial Insurance of New Energy Vehicles (Trial)", and the exclusive insurance products for new energy vehicles were also launched.
Some insiders believe that the most direct benefit of car companies directly participating in auto insurance services is that they can introduce a more accurate premium rate change calculation method for drivers' driving behavior and vehicle accidents. Since automakers have more driving behavior data, which provides a technical basis for differentiated pricing and risk control, it is possible to realize personalized auto insurance products with one person, one car and one price, which will greatly promote the development of new energy auto insurance.
Editor: Huang Lei Proofreader: Feng Wenjun
Photo Editor: Zhao Yanyi Producer: Zhang Wei
Editor-in-charge: Zhang Xiaoguang Producer: Pu Hongyi
Issued: Pan Linqing