Venpaula
In March this year, the State Administration for Market Regulation approved the declaration and registration of "BYD Insurance Brokerage Company", and BYD officially entered the auto insurance industry. On March 25, BYD Insurance Brokerage Co., Ltd. was established with a registered capital of 50 million yuan, which is 100% controlled by BYD Automobile Industry Co., Ltd.
This is not the first new energy vehicle company into the insurance industry, Xiaopeng, Weilai has previously entered the insurance business, Tesla is the first new energy vehicle companies to carry out insurance business, according to statistics, in 2016, Tesla launched the InsureMyTesla program in Australia and Hong Kong, and it began to make profits early.
The benefits in new energy vehicle insurance are very large, which is a flashpoint for new energy vehicle companies to increase revenue. According to an investigation by the State Administration of Municipal Supervision, at the end of 2021, the number of new energy vehicles in the mainland will be 7.84 million, and the premium scale has exceeded 40 billion yuan. By 2025, the premium scale is expected to reach 154.3 billion yuan; in 2030, it will reach 1,279 billion yuan, accounting for about 31.3% of the total premium of motor insurance.
However, at present, insurance companies for new energy vehicle insurance are not doing well, and there is no exclusive new energy vehicle insurance in the mainland before 2021. Last year, the "Exclusive Clauses for New Energy Vehicle Insurance (Trial)" began to be implemented nationwide, but the cost of exclusive insurance for new energy vehicles rose sharply, which brought a considerable impact on the sales of new energy models.
Previously, the news of Ping An's refusal to insure BYD's new energy models broke out, and the rumors that new energy models were discriminated against by insurance companies were confirmed. In such an environment, the establishment of insurance brokerage companies by new energy vehicle companies is a better solution.
Usually insurance companies are directly selling insurance to customers, and insurance brokers we can understand as an insurance intermediary, specifically, insurance brokerage companies are for the specific needs of customers, the use of their own professional advantages, to provide customers with professional insurance plans and risk management programs, the current variety of new energy types are in need of such services.
New energy vehicle companies involved in the auto insurance industry do have no small advantages. The most critical data and technology advantages are unmatched by traditional insurance brokers. No insurance company knows its own model better than the car company, and the car company can customize exclusive insurance products for the brand's models through its own first-hand data, and can also take into account the sale of insurance products while selling models, forming a perfect closed loop.
For the well-deserved leader of domestic new energy vehicles, according to the statistics of the Association of Passenger Vehicles, BYD's annual sales of new energy vehicles in 2021 will be 593745, ranking first in China, and the premium paid by consumers is as high as 3.6 billion yuan. Time to this year, in February, BYD new energy vehicle sales of 86669 units, the market share reached 31.8%, if it is to buy its own car insurance, BYD in February to occupy the new energy car insurance market share also reached 31.8%.
Today, although BYD's sales have been red, BYD's new energy vehicle business is still in the stage of increasing revenue and not increasing profits, and the profit margin is only about 60% of Tesla's. Entering 2022, BYD is also facing pressures such as rising prices of raw materials for new energy vehicles and the decline of the national subsidy, so BYD can increase profits with entry car insurance.
According to statistics, the insurance companies affiliated to the car companies that have been established for more than 10 years have generally achieved profitability. Among them, Xinan Auto Insurance, which was established in 12 years, achieved profitability in 2014, and achieved net profits of 110 million yuan and 127 million yuan in 2019 and 2020, respectively. Therefore, the future profitability of BYD's insurance brokerage company, which is at the head of new energy sales, can be imagined.
The main reason why new energy vehicle insurance is higher in comparison is that the level of scientific and technological intelligence is high, the "difference" between new energy models is greater, and many new energy vehicle parts cannot be shared between them, so the maintenance cost is higher, and after years of precipitation, the parts are more standardized, so the maintenance cost is lower.
Tesla, the first new energy vehicle company involved in the insurance industry, said on its official website that the price of its insurance products can provide Tesla owners with up to 20% or even 30% discounts, which can be compared to the future BYD.
In the future, BYD can form its own voice in pricing, underwriting, risk prevention and control through a large number of customer resources in its own hands, for the needs of different combinations of auto insurance products, and more in need of customized auto insurance services, etc., and can also enhance customer viscosity through high-quality auto insurance brokerage services and build a new auto industry. The user's car insurance is more affordable and personalized, which is a very positive thing for BYD's prospective owners, and it can also stimulate the growth of BYD's sales in the future.
Write at the end:
New energy vehicle insurance is another outlet for the future of new energy vehicles, so IT is timely for BYD to lay out car insurance. BYD is expected to rely on a super high sales share, and it can become the head player of it as soon as it is involved in "risk". As more and more new energy vehicle companies are involved in "insurance", the strange phenomenon that new energy vehicle insurance is higher and cannot afford to be affordable will also be weakened.