An insurance platform dedicated to ensuring proper coverage for new energy vehicles (NEVs), which started operations on 25 January 2025, has successfully helped 114,000 units get insured in the first month that ended 25 February.
This is considered a significant step in China's efforts to strengthen insurance support for the growing NEV sector. According to a report by Xinhua that quoted Insurance Association of China and the Shanghai Insurance Exchange, the platform attracted 185,000 registered users and provided insurance coverage totalling CNY94.49bn ($13.17bn).
The Xinhua report said, “For years, NEV owners have struggled with high premiums and the risk of being denied coverage, while insurers have been burdened by mounting financial losses due to the high repair costs of NEVs.” Insurers participating on the platform are prohibited from denying coverage.
In another step to boost the insurance coverage of NEVs, China issued its first-ever guidelines for insuring NEVs last month to address the challenges facing insurers in this line of business.
China's NEV sector has seen rapid development in recent years. By the end of 2024, the number of NEVs in use in China had reached 31.4m, data from the Ministry of Public Security showed. It is also notable that Chinese electric vehicle manufacturers now dominate the global EV and plug-in hybrid market with a whopping 76% share.