China's National Financial Regulatory Administration, together with the Ministry of Industry and Information Technology, the Ministry of Transport and the Ministry of Commerce, issued guiding opinions setting out a package of measures to improve the protection capacity and service standards of new energy vehicle (NEV) motor insurance, safeguard consumer rights, and support the development of the NEV industry. The guidance aims to deepen reform of NEV insurance, improve product and service supply, and refine the market-based mechanism for policy terms and premium rate formation. The 21 measures are organised into six parts, including steps to reasonably reduce NEV repair and usage costs by promoting lower maintenance costs, encouraging better driving and vehicle-use habits, advancing cross-industry data sharing, and exploring a model-based insurance risk tiering system. On supply-side reform, the guidance calls for innovation and optimisation of NEV insurance offerings, including establishing a high-loss risk-sharing mechanism, prudently adjusting the permitted range for independently set pricing coefficients, expanding commercial motor insurance products, and optimising benchmark commercial motor insurance premium rates. It also addresses insurers’ operational management (including more granular management, adapting to intelligent driving trends, risk-reduction service innovation, and research on safety and economic performance) and sets expectations for stronger supervision, including improved claims service quality, market conduct standardisation, optimised retrospective rate supervision, enhanced industry self-discipline, and strengthened consumer protection. The administration will work with relevant authorities to implement the measures, advance reform on both the demand and supply sides of NEV motor insurance, and improve the overall insurance protection and service system.
China Banking and Insurance Regulatory Commission 2025-01-24
China's National Financial Regulatory Administration and three ministries issue 21 measures to deepen reform and strengthen supervision of new energy vehicle insurance
China's National Financial Regulatory Administration and several ministries issued guidance to enhance NEV motor insurance protection and service standards. The 21 measures focus on reducing NEV costs, promoting data sharing, and innovating insurance offerings, including risk-sharing mechanisms and pricing adjustments. The guidance also emphasizes improved insurer management and stronger supervision to safeguard consumer rights.