China unveils first guidelines on NEV insurance

China on Friday unveiled its first-ever guidelines for the insurance of new-energy vehicles (NEVs), introducing measures aimed at addressing key challenges currently facing the sector.

NEV owners have long struggled with high insurance premiums and the risk of being denied coverage. At the same time, insurers have been burdened by financial losses due to the high repair costs of NEVs.

The guidelines, jointly issued by the National Financial Regulatory Administration and three other government organs, aim to reduce maintenance costs for NEVs. They also emphasize the need for exploring the establishment of a risk classification system for insurance models.

In support of these efforts, the Insurance Association of China and the Shanghai Insurance Exchange announced on Friday that an insurance platform dedicated to the NEV sector will be launched on Saturday.

The platform is designed to ensure proper insurance coverage for NEVs, particularly for high-risk vehicles. Insurers participating in the platform will be prohibited from denying coverage.

China's NEV sector has seen rapid development in recent years. By the end of 2024, the number of NEVs in use in China had reached 31.4 million, a 260-fold surge over the past decade, official data shows.