China Unveils Guidelines to Reform Insurance for New-Energy Vehicles

Beijing, China – In a significant move to address challenges in the new-energy vehicle (NEV) sector, China has released its first-ever insurance guidelines tailored for NEVs. The guidelines, announced on Friday last week, aim to reduce high insurance premiums, improve coverage, and tackle financial losses stemming from costly repairs.

Jointly issued by the National Financial Regulatory Administration and three other government bodies, the guidelines emphasize reducing maintenance costs for NEVs while exploring the establishment of a risk-classification system for insurance models.

To further bolster the initiative, the Insurance Association of China and the Shanghai Insurance Exchange confirmed the launch of a dedicated insurance platform for NEVs. The platform aims to provide comprehensive insurance coverage, particularly for high-risk vehicles, while ensuring that insurers participating in the scheme cannot deny coverage.

China’s NEV market has experienced rapid expansion over the past decade. Official data reveals that by the end of 2024, the number of NEVs in use reached 31.4 million, marking a 260-fold increase within ten years.