The post China’s EV insurance market bleeds billions as claims surge appeared on BitcoinEthereumNews.com.

China’s once-booming electric vehicle (EV) insurance business is fast becoming a money-losing sector. Claims are growing faster than expected, and insurers are losing billions of yuan annually. The issue is that EV adoption in the country has outpaced insurers’ antiquated tools to price risk. As a result, one of the world’s most advanced EV markets has become a battleground for insurers. China has the world’s largest number of EVs on the road. More than 20 million new energy vehicles (NEVs), including pure electric cars and plug-in hybrids, are registered nationwide. And sales continue to soar, with EVs now outselling gasoline cars in several cities. Yet behind the surge, insurance statistics paint a chilling reality. Owners of electric vehicles, many younger than motorists who pilot traditional internal combustion, are roughly twice as likely to file claims on their policies. Their vehicles are also much pricier to repair. Batteries account for roughly a third of a car’s value and are most at risk. These units are mounted under the floor and can more easily be damaged by speed bumps or road detritus. And new ones aren’t cheap; sometimes, replacing one is more than it would cost to repair the entire rest of the car combined. Specialized components like sensors and chips have become more expensive and difficult to find. And often repairs can only be made by authorized service centers, many at Tesla-certified body shops, where costs are all too expensive. In China, insurers lost 5.7 billion yuan ($802 million) on underwriting EV policies in 2024 alone, according to the China Association of Actuaries. Total premium income was almost 141 billion yuan, but claims and repair costs outweighed profits. Qin Lu, the chief executive officer of Greater China at Aon Plc, said insurers could not fully distinguish between car brands, models, and…

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Filed under: News - @ September 22, 2025 6:21 am