The current situation of new energy vehicle insurance
C-end pain points of new energy vehicles
According to the data of compulsory traffic insurance, the private sales of new energy vehicles accounted for 71%, and the sales of pure electric vehicles in non-restricted areas also increased significantly. In addition, according to a survey of new energy vehicle users, we found that 52% of car owners choose to buy new energy vehicles because they recognize the concept of new energy and environmental awareness.
Figure 1 Some of the results of the new energy vehicle user survey.
Competitive landscape of new energy vehicles
The new energy vehicle market is still in the early stages of development, due to its high growth certainty and relatively low threshold, and many players are pouring in. At present, market participants are divided into two camps: new car manufacturers and traditional car companies. New EV manufacturers play the role of challengers with stronger electrification and intelligent technology capabilities, user-centered marketing and operation concepts, and typical companies include Tesla, NIO, Xpeng, etc
As the defenders, traditional car companies have the advantage of deep historical heritage, high brand recognition and perfect product lines, typical enterprises include BYD, BAIC, FAW-Volkswagen, etc.
Internet companies represented by Huawei and Xiaomi are in their infancy to enter the new energy vehicle market, and with their scientific and technological capabilities, they can deploy automobile production and intelligent network battlefields, and can output differentiated services under the premise of cooperating with multiple parties.
Figure 2 Competitive landscape of new energy vehicles
Traditional car insurance cannot meet the protection needs of new energy vehicles
The cost structure of new energy vehicles is very different from that of traditional fuel vehicles, so there are great changes in the risk structure and risk cost of new energy vehicles. The core power system of new energy vehicles is composed of batteries, motors and electronic controls, which replace the engines, gearboxes and other devices of fuel vehiclesIn addition, the scope of liability in the traditional car insurance clause cannot cover the specific risk factors faced by new energy vehicles, including battery failure, charging failure liability, etc., so it will be difficult for new energy vehicle owners to claim compensation after the risk occurs. At the same time, for insurance companies, the frequency and loss ratio of new energy vehicles are higher than those of traditional fuel vehicles, and the use of traditional car insurance products is not conducive to the healthy development of the auto insurance industry in the long run.
Figure 3 Comparison of the cost structure of new energy vehicles and fuel vehicles
New energy exclusive car insurance policy introduced
With the release of the Exclusive Terms for Commercial Insurance of New Energy Vehicles (Trial) of the Insurance Association of China, the auto insurance industry has ushered in new opportunities for development. The main changes to the Exclusive Terms are:1. On the basis of the traditional commercial auto insurance terms, the scope of protection has been expanded, and the "three electrics" system of new energy vehicles and its related risks have been specifically guaranteed
2. The scope of exemption from liability and the depreciation rate of new energy vehicle insurance are clarified
3. According to the characteristics of new energy vehicles, four exclusive additional insurances including power grids and charging piles are customized.
For insurance companies, new energy captive car insurance can help with more accurate pricing, thereby easing the pressure on claims and improving operating profitsFor consumers, new energy exclusive car insurance fills the pain point of insufficient protection of traditional car insurance, helps to eliminate consumers' doubts about car purchase and improve consumers' car experience.
Figure 4 Changes in NEV exclusive car insurance
New EV manufacturers reconstruct marketing relationships
Tesla's success in the direct sales model has driven the determination of new car-making forces and traditional car companies to make efforts in the construction of innovative channels. In the era of new energy vehicles, the relationship between people, vehicles and factories is being reconstructed. In the traditional model, car companies often only undertake automobile manufacturing tasks, and delivery, maintenance, and value-added services are all undertaken by dealers, and the connection between car companies and users is weak. Under the current model, car companies are penetrating the entire value chain of the automotive industry and becoming the main provider of comprehensive services for consumer vehicles.
Figure 5 The focus of comprehensive services has shifted from dealers to car companies
New EV manufacturers reconstruct marketing relationships
The rigid demand attribute and stickiness of auto insurance enable dealers to control the service entrance of car owners, so as to expand auto aftermarket business such as auto maintenance, claims repair, and auto finance. In general, the profit margin of the automotive after-sales service market is much higher than that of the automobile manufacturing process, so the profit value created by it often accounts for 50-60% of the entire automotive industry chain. In the context of the current "disintermediation" and the reconstruction of the relationship between "people, vehicles and factories" of new energy vehicles, car companies are expected to face end consumers directly on the basis of direct sales model and vehicle networkingIn order to serve the starting point, car companies can develop more service systems such as after-car ecology and the rights and interests of car owners.
Figure 6 Auto insurance services expand the auto ecosystem services
Intelligence is changing the business logic of auto insurance
Smart cars mean that the business logic of auto insurance will change in the context of more sophisticated sensors and controllers, where systems run data streams in real time and provide decision-making aids.
Figure 7 Intelligence changes the business logic of auto insurance
The value of data enables car companies to occupy the core strategic highland of auto insurance operation
Although in the context of the comprehensive reform of auto insurance, insurance companies have mastered the pricing autonomy to a certain extent and can carry out differentiated pricing according to their own business conditions, but because insurance companies cannot grasp the car owner's car data, it is still an offline pricing method of "from the car" in product design. In the era of smart cars, the value of data will be maximized, and under the premise of data security and compliance, the driving behavior, mileage, and time spent in the car will become an important basis for car insurance pricing, so as to provide car owners with personalized car insurance products. In addition, based on sensor data and artificial intelligence algorithm analysis, smart cars can effectively intervene in dangerous driving behaviors, thereby reducing the accident rate and controlling the loss rate of auto insurance. In the claim stage, the driving process data can assist the insurance company to remotely identify the damage and recommend the repair shop, so as to improve the efficiency of post-warranty service. Therefore, under the new auto insurance service chain, car companies will become important players and occupy the leading position in auto insurance operations.
Figure 8: Smart cars redefine car insurance
