Is this market ready for change?Nio spent 50 million yuan to enter the field of insurance brokerage, new energy car insurance not intermediary?

2022-08-04 0 By

Nio’s newly established insurance brokerage company has attracted attention from the industry.According to the Tianyan App, Nio Insurance Brokerage Co Was established on January 19.The legal representative is Qu Yu, with a registered capital of 50 million YUAN, whose business scope includes insurance brokerage business;Insurance agency business;Insurance agency business;Insurance valuation business.In addition, the company is 100% owned by Nio Holdings LTD.It is worth mentioning that NiO is not the first neV company to set up an insurance brokerage.In August 2020, Tesla established a company of the same nature, which is 100% owned by Tesla Motors Hong Kong Limited.At the end of 2021, with the formal implementation of the exclusive provisions of commercial insurance for new energy vehicles, the premiums of many new energy vehicles have increased substantially.With NIO’s entry into the insurance brokerage field, the industry is looking forward to the launch of exclusive insurance products by new energy vehicle companies and insurance companies.Nio’s establishment of an insurance brokerage has not been without a trace.On December 27, 2021, the Exclusive Terms of commercial insurance for New energy vehicles (Trial) of the Insurance Industry Association of China (hereinafter referred to as the “exclusive terms”) was officially launched, and it is clear that new energy vehicles no longer use the traditional commercial auto insurance terms, but have exclusive insurance products.Subsequently, premiums for some models rose.At that time, NiO said, “We are evaluating the possibility of establishing niO auto exclusive insurance products.”Before this, NIO has initially set foot in the insurance field in the form of additional services, providing service packages with no worries and insurance for niO car owners, covering insurance, maintenance and other services.In fact, as early as 2012, insurance regulatory commission issued clear, encourage and support the funded auto enterprise, insurance agency, insurance brokerage firm, or take with existing insurance agency, insurance brokerage firm cooperation, carried out by insurance agency, insurance brokerage company as a whole car insurance business, promote car companies professional agent insurance business operations.In this respect, the international new energy vehicle Tesla is also a pioneer.In August 2020, Tesla established an insurance brokerage company, which is 100% owned by Tesla Motors Hong Kong Limited.In its recent earnings report, Tesla disclosed that the company has launched insurance services in five U.S. states, and Value Penguin estimates that tesla spends an average of $4,548 per vehicle per year on insurance.By the end of 2022, the company expects 80% of ITS U.S. customers to opt for Tesla insurance.By that count, the insurance service is expected to generate billions of dollars in additional revenue.Car companies into the insurance broker advantage geometry?The growing new energy vehicle market has directly spawned a growing new energy vehicle insurance market.In the first half of this year, sales of new energy vehicles exceeded 1.2 million, with the penetration rate rising to 9.4%, according to the Ministry of Industry and Information Technology.In terms of holding capacity, the holding capacity of new energy vehicles in China will reach 7.84 million in 2021, accounting for 2.6% of the total number of vehicles in China.According to the New Energy Vehicle Industry Development Plan (2021-2035), the sales volume of new energy vehicles will reach about 20% of the total sales volume of new vehicles by 2025.It is estimated that by 2035, the annual premium of new energy auto insurance in the industry will increase to about 200 billion yuan.Industry insiders generally believe that compared with traditional insurance companies, new energy vehicle companies have obvious advantages in vehicle travel data and are easier to carry out risk monitoring on users’ car use behaviors.If car enterprises set up insurance institutions can save risk management costs and intermediary costs.At the same time, insurance can be used to enhance the connection with users, so as to expand more comprehensive services and realize service closed loop.At the end of 2021 after the release of new energy auto insurance exclusive provisions, the industry on the new energy market after the disintermediation of higher voice.”For the new energy vehicle premium compared with the same level of fuel vehicles high phenomenon, mainly because of the new energy vehicle insurance historical data accumulation.With the rapid improvement of new energy products in recent years, compared with the old products in the historical data, the technology and safety of new energy vehicles are relatively fast.The probability of failure of some early old models is relatively high.Therefore, due to the large fluctuation of historical data, it leads to the introduction of historical data of some models with high failure in the early stage, which affects the reasonable cost and guarantee of high safety and low failure after model improvement.”Cui Dongshu, secretary-general of the National Passenger Car Market Information Association, said, therefore, it is suggested that the insurance industry should use more recent data information in new energy vehicles, and extend the analysis with more short-term data.Lower premiums.At the same time, Cui Dongshu also encouraged vehicle enterprises to establish their own insurance varieties, expand the insurance business of vehicle enterprises, and establish their own low premium insurance system supported by data.He believes that the state should also give effective support to some of the problems in the insurance of new energy vehicles, so as to prevent the new energy car insurance price is high, resulting in the emergence of new energy cars can not afford to use the situation, which is also conducive to the faster development of the new energy car industry.Despite the general trend, there are still many difficulties in the layout of insurance brokerage business of new energy vehicles.”China new energy Auto insurance Ecological Construction White paper” points out that, first of all, there are certain difficulties in obtaining the necessary business license for auto insurance business;Secondly, the direct selling mode requires that the automobile enterprises must have the online system with perfect functions, which not only costs a lot of construction and has a long time cycle, but also is complicated to connect with the warranty system.Third, auto insurance has the characteristics of localization. The nationwide offline service network is its tentacles to ensure customer service, which needs to be accumulated over a long period of time.For this reason, in the early stage of the development of new energy vehicle insurance market, cooperation with traditional insurance companies seems to be a more realistic choice.”White Paper on Ecological Co-construction of China’s New energy Auto Insurance” frankly admits that “neither traditional auto companies with a hundred years of experience nor new car manufacturers have the auto insurance industry, and they need to spend a lot of manpower and financial resources to enter this race track.”Editor: Wang Yunpeng