Kathmandu. China’s electric vehicle (EV) insurers are showing signs of a profit recovery due to rising premiums and adoption of AI technology.
Benefits for insurance companies include higher premiums, intelligent pricing mechanisms, and improved claim handling efficiency. According to the South China Morning Post, insurtech companies such as Cheche Group are using AI for pricing and claim management. Which helps to reduce both risk and operating costs.
Cheche Group is the largest independent technology-driven platform for automobile insurance in China. EV owners, especially young drivers, pay at least 20 per cent more in premium than petrol car owners. This reflects higher maintenance costs and accident risks associated with EVs and ride-hailing services.
Data from China’s National Financial Regulatory Administration also shows that insurance companies earned more than 200 billion Chinese yen in premiums from EV policies last year. That’s 30 percent more than in 2024. –Agency
