Some people say that new energy vehicle insurance is the ultimate battle of car insurance, and some people say that new energy vehicle insurance at this stage is still a hot potato.
In any case, new energy vehicles represent the future, and it is imperative that car insurance services keep up. Whoever can solve the various business pain points of new energy vehicle insurance may be invincible for a long time.
In the face of this development trend of the times, "players" such as new car-making forces, traditional car companies, and traditional insurance companies have left the market one after another, opening a new round of competition.
Among them, BYD, as an important representative of the new car-making forces, has strongly entered the new energy vehicle insurance market, and extended the industrial chain of new energy vehicle insurance by winning an insurance license.
Now, as a representative of the new energy vehicle insurance market, he has opened his first order.
On May 15, it was reported that BYD property insurance's first car insurance policy had been issued, with a premium of 3,900 yuan, including 2,950 yuan for commercial insurance and 950 yuan for compulsory traffic insurance.
3,900 yuan, in the field of new energy vehicle insurance, this amount is affordable compared with the 6,000-7,000 yuan that has been exposed, and even as high as more than 10,000 yuan in premiums. Compared with fuel vehicles in the same price range, this premium is at the "middle and upper" level.
In the future, how will this property and casualty insurance company, which is backed by car companies, lay out its own new energy vehicle insurance business and take root in the fierce market competition?
The first order is free of charge
Future pricing is still unknown
According to some information, the vehicle insured by BYD property insurance this time is from BYD's 24 Dolphin Glory Edition 420km Free Edition. It is reported that the model was launched on February 23 this year, with a guide price of 112,800 yuan.
Judging from the content of the policy, the 950 yuan compulsory traffic insurance contains six major responsibilities, namely, the compensation limit for death and disability is 180,000 yuan, the compensation limit for death and disability without liability is 18,000 yuan, the compensation limit for medical expenses is 18,000 yuan, the compensation limit for medical expenses without liability is 1,800 yuan, the compensation limit for property damage is 2,000 yuan, and the compensation limit for property loss without liability is 100 yuan.
The commercial insurance of 2,950 yuan contains 8 contents, namely new energy vehicle loss insurance, with an insurance amount of 112,800 yuan; New energy vehicle third-party liability insurance, the insurance amount is 2,000,000 yuan; New energy vehicle on-board personnel liability insurance (driver), the insurance amount is 10,000 yuan; New energy vehicle on-board personnel liability insurance (passengers), the insurance amount is 4 seats× 10,000 yuan; Special terms for roadside assistance services (new energy vehicles) 2 times; 1 special contract for vehicle safety inspection (new energy vehicle insurance); Special terms and conditions for driving services (new energy vehicle insurance) 1 time; Special terms and conditions for inspection service (new energy vehicle insurance) 1 time.
It is worth mentioning that this insurance is given free of charge by BYD Property Insurance to new Dolphin owners, which marks the official end of BYD Property Insurance to operate car insurance.
"Buy a car and get insurance", when BYD entered the insurance industry, someone predicted this, and now it has become a reality.
However, the "free giveaway" seems to be an attempt to get off to a good start. According to sources, at present, BYD property insurance is only open to dolphin models for the time being, temporarily limited to sales in Shandong, piloted in a 4S store in Shandong, and other manufacturers will open the authority of other models in the later stage. In addition, the policy pricing of subsequent models is ultimately subject to the charging method officially announced by BYD Property Insurance.
Accelerate layout
4S store has become a breakthrough for expanding customers
When it comes to BYD property insurance, in fact, it has attracted a lot of attention from the market since its establishment, because in addition to the predecessor of a risky company that was taken over, and more importantly, BYD's entry has opened up people's imagination of the new energy vehicle insurance market.
As a new energy vehicle company, the purpose of entering the insurance market is obvious, and new energy vehicle insurance is a must to fight. Especially in the renaming of Yi'an Property Insurance to BYD Property Insurance, the intention is more obvious.
However, how to enter the game and how to take root is also what the industry has always been concerned about. After all, from the perspective of the predecessor of BYD Property Insurance, it is an Internet property insurance company, with no experience in auto insurance business and no offline branches.
It was not until the regulator approved the auto insurance business qualification of BYD P&C Insurance that the road to auto insurance operation of BYD P&C Insurance slowly became clear.
On November 8, 2023, the State Administration of Financial Supervision approved BYD's property insurance to change its business scope and add "motor vehicle insurance, including compulsory motor vehicle traffic accident liability insurance and motor vehicle commercial insurance", which means that BYD has officially obtained the qualification to operate auto insurance.
On May 3 this year, BYD Property Insurance has set up an insurance service portal in the official App and provides 15 subdivided products such as compulsory traffic insurance and commercial insurance, which are clearly aimed at the new energy vehicle market. This move may mean that in the future, BYD property insurance will not only serve BYD's new energy vehicles, but also for owners of other brands.
On May 6, BYD P&C Insurance was approved to use the national unified compulsory traffic insurance terms, basic insurance rates and corresponding rate floating coefficients in 8 regions of Anhui, Jiangxi, Shandong (excluding Qingdao), Henan, Hunan, Guangdong, Shaanxi and Shenzhen, which means that BYD's P&C auto insurance business is about to set sail.
Just when everyone was concerned about how BYD property insurance will price new energy commercial auto insurance in the future, the first auto insurance policy quietly landed. Obviously, BYD property insurance will start with its own pilot and gradually open the door to the new energy vehicle insurance market.
It should be noted that the pilot auto insurance business of BYD Property Insurance started in 4S stores, which also means that BYD Property Insurance's new energy vehicle insurance operation still mainly relies on offline channels. As an Internet insurance company, BYD Property Insurance will expand its offline branches in the future, which may be the key to enhancing its competitiveness in auto insurance.
Expand pricing power
The pain points are still there
It is said that new energy vehicle insurance will be an important force for property insurance companies to turn things around, but from a practical point of view, it is not easy to "grab food" for the cake of new energy vehicle insurance.
Yu Ze, Vice President of Chinese Insurance and President of PICC Property and Casualty Insurance, once said at the 2023 annual results conference of Chinese Insurance that the comprehensive cost ratio of new energy vehicle insurance represents the most focused issue in new energy vehicle insurance, on the one hand, the growth of the entire car insurance comes from the growth rate of new energy vehicles, and the other is the high overall comprehensive cost rate of new energy vehicle insurance.
From the perspective of PICC property insurance, the comprehensive cost ratio of the commercial part of its new energy vehicle insurance is about 7 percentage points higher than that of the whole. In addition, according to Yu Ze's judgment, the loss ratio of new energy vehicle insurance in the entire industry is probably more than 10 percentage points higher than that of fuel vehicles.
Gu Yue, chairman of CPIC Property & Casualty, also said at CPIC's 2023 results conference that from the perspective of CPIC's property insurance insurance
For the reasons for the high cost of new energy vehicle insurance, Gu Yue's analysis has four aspects: first, the intelligent integration of new energy vehicles is high, second, the body structure of new energy vehicles is different, third, the driving behavior of new energy vehicles is completely different from that of fuel vehicles, and fourth, social factors, many new energy vehicles are operated as private cars, that is, used as commercial vehicles.
As the above-mentioned insurance company executives said, the high insurance rate and loss ratio are the core pain points of operating new energy vehicle insurance, and the high premium is also a complaint for car owners. In this case, how to solve the problem, from the regulatory level, has also begun to "prescribe" for new energy vehicle insurance.
At the beginning of this year, the Property and Insurance Supervision Department of the State Administration of Financial Supervision urgently issued the "Notice on Effectively Doing a Good Job in the Underwriting of New Energy Vehicle Insurance", requiring the cancellation of unreasonable restrictions and the prohibition of "one-size-fits-all" for specific models.
Recently, the regulator also issued the "Notice on Promoting the High-quality Development of New Energy Vehicle Insurance (Draft for Comments)", which puts forward the development ideas of new energy vehicle insurance from three aspects, including optimizing the supply mechanism of new energy vehicle insurance, improving the operation level of new energy vehicle insurance in the industry, and coordinating the promotion of various key tasks.
In particular, in terms of exploring the reasonable pricing of new energy vehicle insurance in the future, the regulator has also given "sincerity" and adjusted the range of independent pricing coefficients of new energy commercial vehicle insurance from the original [0.65-1.35] to [0.5-1.5], which has increased the room for rate floating.
Expanding pricing autonomy and giving insurers greater freedom will make the development of new energy vehicle insurance more possible. However, it is necessary to be vigilant that while delegating power, it is also necessary to guard against irrational price competition.
BYD property insurance is becoming a touchstone for the operation of new energy vehicle insurance.
May 14, 2024
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