Core Insights - The increasing entry of electric vehicles into the used car market and the expiration of the 8-year warranty period have heightened consumer anxiety regarding battery lifespan [2][3] - Insurance companies and industry players are innovating products to alleviate concerns about battery longevity, with new insurance products like "battery degradation insurance" being introduced [3][4] - The introduction of battery degradation insurance aims to enhance consumer confidence in purchasing used electric vehicles, thereby improving transaction rates and vehicle resale values [3][4] Industry Developments - The China Banking and Insurance Regulatory Commission and other departments have issued guidelines to support the insurance industry in innovating products for electric vehicle insurance [2] - A recent launch event for "battery degradation insurance" was held by Haixia Insurance and Zhongqi Shubao, targeting six cities for regional promotion [4] - The insurance product covers over 95% of electric vehicle models, with specific conditions regarding battery health and vehicle age [4] Market Trends - The used electric vehicle market is experiencing rapid growth, with over 500,000 transactions in the first five months of the year, but challenges remain, particularly regarding battery health guarantees [3][10] - Platforms like Dongche Di are reporting significant increases in used electric vehicle sales, with a 120% quarter-on-quarter growth in the second quarter [10][11] - The market shows a strong preference for pure electric vehicles, with over 70% of transactions involving these models [13] Consumer Insights - Consumers are generally cautious about new battery insurance products, often concerned about stringent terms and potential difficulties in claims [4][7] - The lack of standardized battery degradation detection methods creates information asymmetry, making it difficult for consumers to assess battery health when purchasing used electric vehicles [13] - Initiatives like Guazi's "100-day battery buyback guarantee" aim to enhance consumer trust by providing a safety net for battery performance [13]

Group 1 - The core issue facing electric vehicle owners is the anxiety over battery lifespan and the high costs associated with battery replacement, which can exceed the cost of purchasing a new vehicle [1] - The insurance industry has not yet developed products to address battery degradation concerns due to data deficiencies and high technical barriers [1] - A new insurance product, "New Energy Vehicle Battery Capacity Guarantee Insurance," has been launched in Sichuan to alleviate consumer concerns by covering battery replacement or repair if degradation exceeds agreed limits [2] Group 2 - The insurance product includes a comprehensive service system that monitors battery health and provides timely interventions to reduce degradation rates [2] - The insurance company faces challenges in pricing due to the variety of battery types and usage patterns, which affect risk assessment [2] - The insurance sector is also expanding into the energy storage market, with products designed to cover the entire lifecycle of energy storage systems, addressing risks such as capacity degradation and market fluctuations [3][4]