Top Insurers Achieve Profitability in NEV Insurance Amid Industry-Wide Structural Challenges

The 2025 annual reports of listed insurers reveal that leading property and casualty (P&C) insurers—including PICC Property and Casualty, CPIC Property & Casualty, and Ping An P&C—have achieved underwriting profitability in their new energy vehicle (NEV) insurance businesses, alleviating the previous situation where “policyholders complained about high premiums while insurers lamented losses.” This shift stems from coordinated efforts driven by policy guidance, industry collaboration, and self-regulation. In early 2025, the National Financial Regulatory Administration and three other government departments jointly issued guidelines explicitly calling for advancing NEV insurance development by reducing repair costs, optimizing product offerings, and enhancing management capabilities. Since then, insurers have adopted refined operational strategies, incorporating dynamic risk factors—such as driving behavior, battery health, and charging frequency—into pricing models to improve risk identification and pricing accuracy. Simultaneously, they have partnered with automakers and battery manufacturers to establish claims and repair networks covering the “three electric systems” (battery, motor, and electronic control), effectively lowering repair costs and easing high claims pressure. Despite profitability among leading players, structural challenges persist across the industry. Data from 2025 shows a significant increase in NEV insurance policies written, yet the sector as a whole remains in an underwriting loss position, with claim ratios exceeding 100% for certain vehicle models. Smaller and mid-sized insurers continue to face pressure due to weaker pricing capabilities and cost controls, while claim ratios for commercial-use NEVs remain stubbornly high. Consumer demands regarding premium levels and claims services have yet to be fully met. Looking ahead, leading insurers must set an example by deepening technology adoption, refining pricing and cost-control systems, and strengthening collaboration with smaller peers. Smaller insurers, in turn, should focus on niche markets and explore differentiated strategies. Industry-wide collaboration is seen as key to achieving sustainable profitability in NEV insurance. Insurers, automakers, and regulators must each fulfill their roles to jointly drive service upgrades and ecosystem improvements, thereby better supporting the growth of the NEV industry and the real economy.