As we all know, the premium of new energy vehicles is more expensive than that of ordinary fuel vehicles Xiaomi SU7 （ parameter | picture ）For example, the first year's all risk insurance of the car is about 8000 yuan, and the premium of the car with 200000 yuan is not much different from that of the fuel car with 50000 yuan or 600000 yuan.
Presumably, new energy car owners will generally feel pain when buying car insurance, which can not help but cause people to think deeply. The price of the car market has been hit. When can the car insurance industry also hit the price?
Don't worry, because BYD has taken action now!
History of BYD Insurance Company
On May 13 this year, the official account of Difanzhijia revealed that BYD Property&Casualty Insurance officially issued the first automobile insurance policy, involving 2024 models of BYD dolphin The glorious 420km free version (the guiding price is 112800 yuan) has a total premium of 3900 yuan, including 2950 yuan for commercial insurance and 950 yuan for compulsory traffic insurance. It is also said in the disclosure that BYD Insurance is only open to Dolphin models for the time being. It is now limited to sales in Shandong Province and is piloted in a 4S store in Shandong. The authority of other models needs to wait for later manufacturers to open in succession.
Unfortunately, at present, this policy does not disclose the upper limit of third-party compensation, nor does it disclose other additional insurance types, so it is difficult for us to determine whether the 3900 yuan premium is expensive or not. However, from the comment area, we can see that the owners of BYD Dolphins still quite agree with this. Some BYD Dolphin owners said that their car collection insurance was more than 4600 yuan, and the price of 3900 yuan was good and cost-effective.
In fact, BYD Property Insurance's auto insurance business (including compulsory traffic insurance and commercial insurance) has been approved as early as November 2023. Recently, the State Administration of Financial Supervision and Administration officially approved BYD's use of nationwide compulsory traffic insurance clauses in Anhui, Jiangxi, Shandong (excluding Qingdao), Hainan, Hunan, Guangdong, Shaanxi and Shenzhen, Basic insurance rate and corresponding rate floating coefficient. This shows that the first boot of BYD Property&Casualty has finally landed.
It is worth noting that BYD tried the water insurance track earlier than we expected. In 2013, BYD took a stake in Qianhai Insurance Trading Center (Shenzhen) Co., Ltd. In 2021, Guiyang BYD Shengshi Xinjing Automobile Sales Service Co., Ltd. was established, with its business scope covering insurance brokerage, insurance agency and concurrent insurance agency. In March 2022, BYD Insurance Brokerage Co., Ltd. was approved to be established, with the business scope of insurance brokerage.
In 2023, BYD invested 3.6 billion yuan to acquire Yi'an Insurance and renamed it BYD Insurance Company. As one of the previous four professional Internet insurance companies in China, Eason Insurance carried out relevant insurance business closely following the online loan P2P platform that year. However, with the explosion of online loans, the company was ultimately insolvent. In 2022, it was approved to enter bankruptcy and restructuring procedures, and was the first property insurance company in China to go bankrupt and restructure. At first, Yi'an Insurance did not have auto insurance business. However, after BYD's property insurance changed its business scope last year, it added "motor vehicle insurance, including compulsory motor vehicle traffic accident liability insurance and commercial motor vehicle insurance". In this way, BYD Insurance Company was qualified to operate auto insurance.
What is the development prospect of BYD's insurance business?
Like the automobile industry, the insurance industry also has fierce competition. People who own cars know that when the auto insurance expires, they will receive sales calls from different auto insurance staff. Everyone will choose whichever one is cheaper, but they will not always choose one.
The reason why BYD entered the auto insurance track is very simple. One word: money. Its sales volume is so high. I don't know how much business it contributes to the insurance company every year. It's better to eat this cake than to give it to others. In this way, it can also earn a good cash flow for itself.
According to the data, in 2023, the three insurance giants, PICC, Ping An and Pacific, will have a total vehicle insurance premium of 6002.991 billion yuan, accounting for 68.67% of the industry's revenue, and the three companies will have a total profit of 15.765 billion yuan. A trillion yuan market and ten billion yuan profit will make everyone jealous.
Maybe some friends will say that auto insurance, especially the auto insurance of new energy vehicles, is basically low profit. Is BYD not afraid of losing money and making money? It is necessary to check BYD's advantages in auto insurance.
First, the position advantage. A car goes through three steps from production to consumers: production, sales and insurance. The status of the insurance company is quite low, and even anyone can step on it. On the one hand, it needs to pay the dealer fees, which is to say rebate. On the other hand, it also needs to bear the high price of original parts from 4S stores and OEMs. The final profit is really not much. BYD is different from ordinary insurance companies. As a car company, it should be more powerful and can earn more profits from 4S stores. In addition, the original parts of the OEM are also their own responsibility. Insurance prices can be lower. Don't consumers just want to be "cheap"? As a result, the bundling insurance of selling cars that everyone had called for before became a bonus item.
Second, data advantages. The main reason why some insurance companies are unwilling to do business in new energy vehicles is that the accident rate is too high. This problem is negligible in front of automobile enterprises. Which part of that car has a high failure rate? Has any car ever had an accident? Which car has replaced which parts? The background of the car enterprise is clear, so BYD can flexibly adjust the premium of each car owner according to the data, which is impossible for insurance companies to do.
Uncle Che's summary
In general, BYD has many advantages in entering the auto insurance track as a car company. The domestic car owners have been in the insurance company for a long time, and this operation of BYD has been praised repeatedly. However, we need to be clear about the fact that the auto insurance industry has a deep water, which involves a lot of risk assessment and management work. Therefore, it is unrealistic to hope that BYD Property Insurance will come up with cheap prices and good service. Personally, it is a good thing for BYD to enter auto insurance, but whether it can become the catfish needs to be observed again.
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