BYD Insurance Brokerage, a subsidiary of Chinese electric vehicle giant BYD, has officially entered the process of deregistration after just over three years of operation. In a recent notice, the company announced it would be dissolved and apply for deregistration with the relevant corporate authorities.
China's insurance industry is undergoing a sharp contraction in executive pay, driven by tighter regulatory scrutiny and formal pay restraint policies. The latest data shows that in 2024, only five unlisted insurers reported senior executive annual salaries exceeding CNY5m ($690,000), down from 10 in 2023. In some cases, individual pay packages dropped by as much as 67%.
China's National Financial Regulatory Administration (NFRA) has issued a policy directive aimed at transforming the personal sales structure of the life insurance industry. The new framework, detailed in a notice released just recently, seeks to realign commission incentives, raise professional standards, and strengthen long-term service capabilities among life insurance agents. The move also supports the development of industry-wide product classification and agent tiering standards, to be led by the Insurance Association of China.
China's booming NEV sector, now with a market penetration rate exceeding 40%, is driving rapid growth in NEV motor insurance. In Q1 2024, NEV commercial motor insurance premiums reached CNY314.3bn ($43.3bn), up 44% year-on-year. Meanwhile, claims-related filings rose 36.3%, a slower pace than premium growth, reflecting improvements in risk levels driven by advances in vehicle technology.
Recently, Shenzhen Financial Regulatory Administration announced that six Shenzhen-based property insurers jointly issued the country's first cross-border e-commerce credit guarantee policy. The launch marks the official start of Shenzhen's pilot program for using insurance innovation to support the cross-border e-commerce sector.
These are the highlights for all events and updates across the industry this week.
These are the updates on insurance regulation across China this week.
Zhibao Technology, an InsurTech that primarily engages in providing digital insurance brokerage services, has announced the establishment of Zhibao Labuan Reinsurance Company.
China's new mandatory national safety standards for electric vehicle (EV) batteries will take effect on 1 July 2026, these will be the world's strictest EV battery standards.
The first quarter of 2025 has brought unexpected challenges for China's personal insurance sector, as the traditional peak season for sales cooled significantly.