Chinese electric vehicle (EV) insurers are beginning to see signs of profitability recovery, supported by rising premiums and the adoption of AI technologies, according to industry sources.
Factors in the insurers' favour include higher premiums, intelligent pricing mechanisms and improved claims-handling efficiency.
InsurTech companies, such as Cheche Group, are leveraging AI for pricing and claims management, helping to reduce both risk and operational costs, reported South China Morning Post. Cheche Group is the largest independent technology-driven platform for automobile insurance in China.
EV owners—predominantly younger drivers—pay at least 20% higher premiums than petrol car owners, reflecting the higher repair costs and accident risks associated with EVs and ride-hailing services.
Data from the National Financial Regulatory Administration also show that insurance companies generated over CNY200bn in premiums from EV policies last year, representing a 30% increase compared with 2024. In 2024, insurers collectively underwrote EV policies at a loss of CNY5.7bn ($825m).