According to Bloomberg, there are already tens of millions of electric vehicles on China's roads, and sales are still growing rapidly. However, Chinese insurance companies have found that new energy vehicle owners are about twice as likely to file claims as gasoline vehicle owners, and electric vehicle repair costs are significantly higher. Although electric vehicle insurance premiums are at least 20% higher than gasoline vehicle insurance, China's new energy vehicle insurance has been operating at an underwriting loss for at least the past three years.

According to data compiled by the China Actuarial Society, the Chinese insurance industry will suffer an underwriting loss of 5.7 billion RMB on new energy vehicle insurance in 2024, and further losses are expected this year.

Electric vehicles accelerate faster than traditional gasoline vehicles, and excessive speed on bumpy roads can easily damage the batteries mounted on the chassis. The battery system in electric vehicles is complex and extremely costly, often accounting for up to one-third of the vehicle's value.