New Energy Vehicle Insurance Posts $7.8B Underwriting Loss in 2025; 143 High-Loss Models Named

In 2025, China's insurance industry underwrote 43.58 million new energy vehicles (NEVs), a year-on-year increase of 40.1%, generating premium income of RMB 190 billion and providing risk coverage amounting to RMB 159 trillion. Despite charging higher premiums than for conventional fuel-powered vehicles, the sector still reported an overall loss of RMB 5.6 billion—though this represented a RMB 1 billion improvement compared to the previous year—and saw its combined expense ratio decline by 1.3 percentage points. Data shows that there are currently 429 vehicle series in significant scale (370 passenger car models and 59 commercial truck models), of which 143 have loss ratios exceeding 100% (excluding administrative expenses), an increase of six from the prior year. Information on these high-loss vehicle series will be shared with automakers to encourage improvements in vehicle safety and repair cost-efficiency, thereby reducing total lifecycle ownership costs.