Shanghai (Gasgoo)- On May 6, the China Banking and Insurance Regulatory Commission(CBIRC) issued a reply, permitting Shenzhen BYD Property & Casualty Insurance Co., Ltd. (BYD P&C Insurance) to use nationally uniformed regulation and rates on compulsory traffic accident liability insurance for motor vehicles.
Specifically, BYD is allowed to use China's uniformed motor vehicle insurance terms, basic insurance rates, and corresponding rate adjustment factors in Anhui, Jiangxi, Shandong (excluding Qingdao city), Henan, Hunan, Guangdong, Shaanxi, and Shenzhen provinces.
In May 2023, BYD Auto Co., Ltd. (BYD) was approved to acquire 1 billion shares of Yi'an P&C Insurance Co., Ltd., holding a 100% stake, thereby taking over the bankrupt reorganization of Yi'an P&C Insurance Co., Ltd.. In the same month, the official website of the CBIRC announced an administrative license approving the change of "Yi'an P&C Insurance Co., Ltd." to "Shenzhen BYD Property & Casualty Insurance Co., Ltd."
BYD is not the only car manufacturer venturing into the insurance business, with many others following suit, especially in the new energy vehicle (NEV) sector. The enthusiasm of many NEV manufacturers stems from the broad prospects for the NEV insurance business, driven by the rapid increase of NEVs in China.
According to data from the China Association of Automobile Manufacturers (CAAM), in 2023, China's sales of NEVs reached 9.495 million units, representing a year-on-year leap of 37.9%, and a market share of 31.6%. In the first quarter of 2024, the country's NEV sales reached 2.09 million units, jumping 31.8%, from a year ago, and accounting for 31.1% of the total figure.
