China Fund News Amman
On the morning of May 6, the official website of the State Administration of Financial Supervision posted a public reply to Shenzhen BYD Property Insurance Co., Ltd. (hereinafter referred to as BYD Property Insurance) on the approval of the terms and rates of compulsory insurance for motor vehicle traffic accident liability. According to the State Administration of Financial Regulation, it agreed that BYD P&C Insurance will use the national unified compulsory traffic insurance terms, basic insurance rates and corresponding rate floating coefficients in Anhui, Jiangxi and other places.
According to the State Administration of Financial Regulation, BYD Property Insurance should attach great importance to the compulsory liability insurance business, strictly implement the financial accounting, cost sharing, reserve assessment, document and mark management, system control and information disclosure and other systems of compulsory liability insurance, strengthen risk management, improve service quality, and effectively protect the legitimate rights and interests of the insured and traffic accident victims.
From the perspective of the industry, the development direction of BYD property insurance has been clear, that is, the field of new energy vehicle insurance. BYD Property Insurance has inherent advantages in new energy vehicle insurance, and may apply to expand its business scope to focus on car insurance, especially new energy vehicle insurance, to create a stronger ecological closed loop of the industrial chain.
Soochow Securities estimates that with the increase in the number of new energy vehicles, it is expected that by 2030, the scale of new energy vehicle insurance premiums will reach 454.1 billion yuan, accounting for about 32.1% of the total car insurance premiums.
Some people in the industry also believe that "auto insurance is managed territorially, and it is not easy to approve eight regions at a time, which reflects the support for BYD Property Insurance and BYD Group." ”
The first general manager was a veteran of auto insurance
According to previous public reports, BYD Property Insurance, formerly known as Yi'an Property Insurance, was previously approved to enter the bankruptcy reorganization procedure after being announced to be taken over by the former China Banking and Insurance Regulatory Commission due to its solvency not meeting the standard. In May last year, the former China Banking and Insurance Regulatory Commission approved BYD Automobile Industry Co., Ltd. to acquire 100% of the equity of Yi'an Property Insurance.
As a result, BYD officially entered the insurance field, and who will hold the position of general manager of this newly established property insurance company has attracted a lot of attention in the industry.
In March 2024, BYD Property Insurance announced that Wang Yong will be the general manager of Shenzhen BYD Property Insurance from March 15, 2024, after being deliberated and approved by the second board meeting of Shenzhen BYD Property Insurance and approved by the State Administration of Financial Regulation.
According to public information, Wang Yong once worked for China United Property Insurance, served as the person in charge of the Shandong Zibo Central Branch of China United Property Insurance, and later entered the headquarters of China United Property Insurance as the head of the auto insurance department. During his tenure as Head of the Motor Insurance Department, he was the first to introduce the ABCD business classification of motor insurance. At the same time, Wang Yong has rich experience in the innovative management of auto insurance and online telemarketing.
In July 2021, Wang Yong was approved by the regulator to serve as the general manager of China United Property & Casualty Insurance Guizhou Branch, in June 2022, Wang Yong was transferred to China United Property & Casualty Insurance Inner Mongolia Branch as Secretary of the Party Committee and General Manager, and from March 15, 2024, he was appointed as the general manager of BYD Property & Casualty Insurance.
Last year, the loss was 19.9151 million yuan
Fund Jun noted that on May 6, 2023, BYD Automobile Industry Co., Ltd. acquired 100% of the equity of Yi'an Property Insurance. But in the past year, BYD P&C does not seem to be doing business.
According to the company's recently disclosed 2023 solvency report, last year, BYD Property Insurance achieved an insurance business income of -6,900 yuan and a net loss of 19,915,100 yuan. And it seems that it has been preparing for the launch of car insurance services. On November 8, 2023, the regulatory authorities officially approved the addition of "motor vehicle insurance, including compulsory motor vehicle traffic accident liability insurance and motor vehicle commercial insurance" to the business scope of BYD's property insurance, which means that BYD has officially entered the auto insurance market, while the original business scope of Yi'an property insurance does not include auto insurance.
BYD APP online insurance service netizens praised
According to public media reports, recently, BYD has set up an insurance service entrance in the official APP, however, the function does not support online insurance at present. BYD introduced in the APP that the service scope of BYD Insurance includes 7 main categories and 15 subdivisions of vehicle insurance products, including compulsory traffic insurance and commercial insurance, and commercial insurance clearly refers to new energy vehicles.
This news made many BYD owners excited. Previously, according to a number of media reports, while the price of new energy vehicles was generally reduced, some car owners reported that car insurance premiums did not fall but rose, and they were rejected when renewing their insurance, which caused them trouble.
The news of BYD's property insurance approval has made consumers look forward to it, and new energy vehicle owners who bear higher premiums and may encounter insurance refusals will be resolved one after another.
In the eyes of insurance companies, the high insurance rate and loss ratio lead to higher insurance premiums for new energy vehicles. According to the data of Shenwan Hongyuan's research report, the loss ratio of new energy vehicle insurance is close to 85% on average, and insurance companies are facing greater pressure on underwriting losses. Taking car damage insurance as an example, the insurance rate of family cars with the highest proportion of new energy vehicles is as high as 30%, which is significantly higher than that of fuel vehicles (19%), and the average compensation amount is also significantly higher than that of fuel vehicles.
In fact, in the face of the "dilemma" of new energy vehicle owners bearing high premiums and may encounter refusal of insurance, and insurance institutions may face losses due to high loss ratios, the Property Insurance Supervision Department of the State Administration of Financial Supervision issued the "Notice on Effectively Doing a Good Job in the Underwriting of New Energy Vehicle Insurance" in January this year, requiring property insurance companies not to refuse to insure the compulsory insurance of new energy vehicles, and commercial insurance is willing to protect all of them, and not to take unreasonable restrictions and underwriting measures such as "one-size-fits-all" for specific new energy vehicles in terms of system control and underwriting policies.
Recently, the relevant person in charge of the Ministry of Commerce also said that it will study and promote the optimization of new energy vehicle insurance rates, promote the improvement of new energy vehicle socialized maintenance service capabilities, and strive to solve the worries of the masses when buying cars.
According to incomplete statistics, in addition to BYD, many car companies have entered the new energy vehicle insurance market. In July 2018, Xpeng Motors established Guangzhou Xpeng Automobile Insurance Agency Co., Ltd., in 2020, Tesla established an insurance brokerage company, in January 2022, NIO invested 50 million yuan to register and establish NIO Insurance Brokers, and in mid-2022, Ideal acquired 100% equity of an insurance brokerage company through its subsidiaries.
Editor: Captain
Review: Xu Wen