Zhong Guo Zheng Quan Bao·2025-09-11 20:17Core Insights - The new energy vehicle insurance business, which previously caused losses for property insurance companies, is now showing signs of profitability among leading insurers as of mid-2025 [1][2][3] Group 1: Industry Performance - Leading insurers like China Pacific Insurance and Ping An have reported profitability in their new energy vehicle insurance segments, with China Pacific Insurance achieving a premium income of 10.596 billion yuan and covering over 5.3 million vehicles [1][2] - Ping An's half-year report indicates a 49.3% year-on-year increase in insured new energy vehicles, reaching 5.75 million, with premium income of 21.7 billion yuan, marking a 46.2% increase [2] - BYD Insurance, fully owned by BYD, turned a profit in the first half of 2025, reporting a net profit of 31.35 million yuan after a loss of 169 million yuan in 2024 [2] Group 2: Cost and Profitability Factors - The overall cost ratio for car insurance among major insurers is declining, with China Life, Ping An, and China Pacific reporting ratios of 94.2%, 95.5%, and 95.3% respectively, down by 2.2, 2.6, and 1.8 percentage points year-on-year [2] - The rapid growth in the number of new energy vehicles is driving premium income, while insurers are implementing refined management practices to reduce costs and improve profitability [3][5] Group 3: Future Outlook - Industry experts predict that the new energy vehicle insurance sector may achieve overall profitability within the next three years, driven by lower repair costs, reduced accident rates, and improved pricing capabilities as data accumulates [5][6] - The shift in the insurance structure, with household vehicle premiums increasing from 42% in 2020 to 67% in 2024, is contributing to a decrease in overall claim rates [3][5] Group 4: Challenges and Recommendations - Smaller insurance companies remain cautious in the new energy vehicle insurance market, facing challenges such as high repair costs and insufficient data for accurate risk assessment [4][5] - Industry stakeholders are encouraged to collaborate to enhance pricing accuracy, innovate product offerings, and reduce repair costs, with suggestions for flexible insurance products and data sharing to improve risk management [6][7]