Jing Ji Ri Bao·2025-09-21 21:53Core Insights - The Chinese auto insurance market is projected to exceed 913 billion yuan in premiums by 2024, accounting for over 54% of total non-life insurance premiums [1] - The industry is focused on improving operational capabilities to provide fair pricing and comprehensive risk coverage for consumers [1] - The auto insurance sector is also expected to drive improvements in vehicle safety and performance standards among manufacturers, supporting the international expansion of Chinese automotive brands [1] Group 1: Market Performance - By the end of 2024, the comprehensive expense ratio for auto insurance is expected to be 23.8%, a decrease of 4.1 percentage points year-on-year, marking the lowest level in nearly 18 years [2] - The comprehensive claims ratio for auto insurance is projected to rise to 74.1%, an increase of 3.1 percentage points year-on-year [2] - The average premium paid by consumers has decreased by 21% compared to pre-reform levels in 2020 [2] Group 2: Industry Reforms - The commercial auto insurance sector has undergone multiple rounds of reforms over the past decade, addressing issues from earlier development phases by lowering rates, reducing commissions, and expanding coverage [2] - The implementation of the "reporting and operation in unison" policy has effectively regulated the auto insurance market, with a reported comprehensive cost ratio of 94.2% for a major insurer, down 2.2 percentage points year-on-year [2] Group 3: Emerging Risks and Opportunities - Natural disasters are increasingly impacting the auto insurance sector, with losses from significant events potentially reaching nearly 1% of market premium volume [2] - The auto insurance market is facing challenges from high claims costs associated with new energy vehicles, which have an average comprehensive cost ratio exceeding 100% and incurred losses of 5.7 billion yuan [4] Group 4: New Energy Vehicle Insurance - In 2024, premiums for new energy vehicle insurance are expected to reach 140.9 billion yuan, representing 15.4% of total auto insurance premiums [4] - The average risk cost for new energy vehicles is 2.2 times that of traditional fuel vehicles, contributing to high claims rates [4] - The high claims rates are attributed to specific physical characteristics of new energy vehicles and differences in driving behavior compared to traditional vehicles [4] Group 5: Regulatory Support and Innovations - Regulatory bodies have issued guidelines to promote high-quality development in new energy vehicle insurance, focusing on reducing maintenance costs and innovating insurance offerings [5] - A new platform has been launched to facilitate insurance for new energy vehicles, ensuring that insurers cannot refuse coverage [5] Group 6: International Expansion - Chinese insurers are beginning to expand new energy vehicle insurance services internationally, with a focus on markets like Hong Kong and Thailand [6][9] - The first overseas new energy vehicle insurance policy was successfully issued in Hong Kong, with plans to further expand into Southeast Asia and beyond [6][9] - Strategic partnerships with local insurers are being formed to provide comprehensive risk management solutions for Chinese automotive brands operating abroad [7][8]