It is believed that everyone has heard about BYD's entry into the auto insurance industry, but at that time, BYD's auto insurance was not yet widely open, and only launched small-scale trials in a few areas. Many car owners had heard of wanting to buy, but could not buy it. But now, car owners in Shandong, Henan and other seven places can buy BYD auto insurance.
On June 18, BYD Property&Casualty Insurance Co., Ltd. has opened an insurance entrance, and car owners can purchase insurance on their official WeChat official account. The open areas include Anhui, Jiangxi, Shandong (excluding Qingdao), Henan, Hunan, Guangdong, Shaanxi and Shenzhen. It is expected that other provinces will also be open later, so if you are not in these seven places, there is no need to worry.
What everyone cares about most is the price. According to an insurance policy information circulated on the Internet, the price of BYD auto insurance is very, very amazing. According to the insurance policy information, the insurance premium of 350000 car damage is only 2200+yuan, which is at least 30% cheaper than other commercial insurance. If the policy information spread is true, then a catfish in the auto insurance industry is really coming, and the insurance industry is really going to change.
Auto insurance has always been the largest type of property insurance, but this industry has been criticized conservatively before, and has fallen into a very strange phenomenon, that is, insurance companies cry that auto insurance does not make money, or even lose money, while car owners cry that auto insurance is too expensive. Data shows that in the first half of 2023, the domestic auto insurance premium income will be 424.9 billion yuan, up 5.5% year on year; The underwriting profit was 8.6 billion yuan, down 4.1 billion yuan year on year. Specifically, 26 auto insurance companies made profits and 37 made losses. Among them, PICC Property&Casualty Insurance, Ping An Property&Casualty Insurance and CPIC Property&Casualty Insurance realized 8.59 billion yuan in auto insurance profits, accounting for 99.99% of the entire auto insurance market. That is to say, the leading auto insurance companies are very profitable, and most of other auto insurance companies are making losses.
The arrival of new energy vehicles has changed the auto insurance industry dramatically. Because of the large number of new energy vehicle body parts, high maintenance costs, higher spontaneous combustion rate and other reasons, the insurance of new energy vehicles is not only more expensive, but also the owners often encounter refusals.
It is of great significance for auto companies to make their own insurance
It is Tesla that has done this. It is understood that almost 80% of Tesla's car owners in the US market have chosen to buy Tesla's car insurance. There may be several reasons why BYD joined the insurance industry this time:
First, BYD is the new energy vehicle company with the highest sales volume in China and even in the world at present. The annual premium of BYD's new cars is an amazing figure. BYD may not want to make much profit in the auto insurance industry, because only the top companies in the industry can make money. BYD may hope to reach the car owners again after selling new cars through auto insurance.
As Wang Chuanfu, BYD's chairman, said, BYD can facilitate the process of insurance and design, and reduce the cost of insurance claims. At the same time, BYD has three or four thousand 4S stores in its marketing channels, which can reduce insurance sales expenses.
Second, BYD has great advantages over other insurance companies in terms of auto insurance. For example, in terms of parts, BYD produces and sells its own products, making it easier to control costs. Actuaries can better estimate premiums, which is expected to improve profit margins.
And BYD's background can also calculate the premium of car owners through their driving data. Just like Tesla, it also has a safety scoring system, so the premium of car owners with high driving risk is higher. In this way, the auto insurance industry is expected to develop in a more refined direction.
For example, previously, the premium was calculated according to the number of accidents and violations, plus the value of the vehicle and the zero to zero ratio. Now, there is an additional assessment of the driving behavior of the owner.
In a word, BYD may play a catfish role in the auto insurance industry, promoting the development and progress of the entire industry, and may even bring about a reduction in premiums and an improvement in the quality of auto insurance services. For our car owners, this is definitely a benefit.
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