BYD Insurance, the property insurance subsidiary of Chinese automaker BYD, has announced the expansion of its car insurance offerings in 7 major provinces in China, marking a strategic move to diversify its business and leverage its expertise in the industry.
The expansion comes as BYD aims to strengthen its position in the insurance market, following in the footsteps of other new energy vehicle (NEV) manufacturers such as Tesla, Xpeng, Nio, and Li Auto, which have ventured into the car insurance market in recent years.
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Through its comprehensive insurance solutions, BYD Insurance provides customers with tailored car insurance and personal insurance products to meet their specific needs. Customers can customize their insurance plans on the enrollment page, offering them flexibility and convenience.
Unlike most automakers that participate in the insurance industry as intermediaries, BYD Insurance has received regulatory approval to independently adjust premium rates using nationwide standard compulsory insurance terms, basic insurance rates, and corresponding rate adjustment factors. This flexibility allows the company to offer competitive pricing and product offerings.
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The move to expand its insurance business comes at a time when the NEV insurance market faces challenges, with vehicle owners complaining about high premiums and insurance companies struggling to maintain profitability. BYD chairman Wang Chuanfu has acknowledged these challenges, stating, “the company aims to lower various costs and expenses in its insurance operations to ensure that NEV insurance not only avoids losses but also becomes profitable.”
Analysts believe that as automakers have a deeper understanding of vehicle data, they can leverage their automotive expertise to gain a competitive edge in areas such as business acquisition, rate setting, claim assessment, and repair services in the NEV insurance market.
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As BYD Insurance expands its insurance offerings in 7 provinces, the market will be closely watching its performance and its impact on the broader NEV insurance landscape in China.
