Shenzhen Pioneers "Battery-Separate" Auto Insurance Model to Tackle High Costs and Losses in NEV Coverage

New energy vehicle (NEV) insurance is currently caught in a dilemma: drivers complain about high premiums, while insurers claim they’re operating at a loss. To break this impasse, Shenzhen recently proposed piloting a “battery-as-a-separate-entity” commercial auto insurance model in specific scenarios such as urban transportation. Local property and casualty insurers have already established dedicated NEV task forces to study the feasibility of implementing this approach. Industry insiders note that separating the vehicle and its power battery as two distinct insured assets could significantly reduce coverage amounts and reshape premium pricing logic—offering the industry a new pathway while easing the financial burden on consumers.