GXED(SH:600617) Chan Ye Xin Xi Wang·2025-12-07 02:01Core Insights - The article discusses the rapid growth of the new energy vehicle (NEV) insurance market in China, driven by the increasing ownership of NEVs, which surpassed 20 million in 2023 and is projected to exceed 30 million in 2024 [1][6]. Group 1: Industry Overview - Automobile insurance, or car insurance, is a commercial insurance that provides compensation for personal injury or property damage caused by natural disasters or accidents involving motor vehicles [2]. - New energy vehicle insurance specifically offers coverage for NEVs, including mandatory traffic accident liability insurance and commercial insurance [2]. Group 2: Market Development Background - The NEV industry is a crucial direction for the global automotive sector's green development and transformation, with significant achievements since the 2020 government plan [5]. - China's NEV production and sales have seen exponential growth, with production reaching 12.88 million and sales 12.87 million in 2024, marking a year-on-year increase of 34.4% and 35.5% respectively [5][6]. Group 3: Current Market Status - The demand for NEV insurance has surged alongside the growing NEV ownership, with the insurance premium for NEVs in 2024 reaching 140.9 billion yuan, accounting for 15.4% of total car insurance premiums, an increase of 12.7 percentage points since 2020 [6][8]. - The average insurance premium for NEVs was 4,395 yuan in 2023, 63% higher than that of traditional fuel vehicles, and is expected to rise to 4,538 yuan in 2024 [8]. Group 4: Challenges in the Industry - Insurers are facing long-term underwriting losses, with a reported loss of 5.7 billion yuan in 2024, leading to difficulties in insuring NEVs and instances of policy refusals [9]. - High insurance premiums and underwriting losses are attributed to high accident rates, expensive repair costs, and insufficient data accumulation [9]. Group 5: Competitive Landscape - Major players in the NEV insurance market include PICC Property and Casualty, Ping An Property and Casualty, and Taiping Property and Casualty, which collectively insured over 24 million NEVs, representing 77% of the national total [10]. - In 2024, PICC's NEV insurance coverage reached 11.59 million vehicles, with a premium income of 50.857 billion yuan, accounting for 36.1% of the total NEV insurance premiums [10]. Group 6: Future Trends - The NEV insurance industry is expected to shift towards online models, leveraging digital technology for product innovation and deeper collaboration between manufacturers and insurers [11][12]. - The trend towards online sales is driven by the younger demographic of NEV owners, who are more receptive to digital transactions [11]. - Digital solutions are being introduced by tech companies and automakers, creating new opportunities and challenges in the NEV insurance market [11].