Some new energy vehicle owners in China are facing higher insurance renewal premiums and repair cost pressures, highlighting the need for automakers, insurers and repair service providers to work more closely as the country's NEV market matures.
The issue does not mean NEV insurance premiums are rising across the board. Rather, premiums are becoming more differentiated among vehicle models and users, reflecting differences in repair costs, loss ratios and vehicle use.
The differentiation comes as the NEV insurance market expands rapidly but still faces claims pressure. Data from the China Association of Actuaries showed that insurers underwrote 43.58 million NEVs in 2025, up 40.1 percent year-on-year. Premium income from NEV insurance reached 190 billion yuan ($26.4 billion), while the sector still posted an underwriting loss of 5.6 billion yuan.
The data also showed that 143 NEV model series recorded loss ratios above 100 percent, meaning claims alone exceeded premiums, even before insurers counted their operating costs.
Zhang Xiaolei, secretary-general of the China Association of Actuaries, said the average per-vehicle risk cost of NEV insurance is about 2.2 times that of gasoline vehicles, while premiums are only about 1.7 times those of gasoline vehicles.
