BYD Obtains License for Property Insurance
On May 9, the China Banking and Insurance Regulatory Commission issued a reply regarding the change of shareholders of Yi’an Property Insurance Co., Ltd., approving BYD Auto Industry Co., Ltd. to acquire 1 billion shares of Yi’an Property Insurance, with a shareholding ratio of 100%.
Yi’an Property Insurance was approved to start operating on February 16, 2016. However, due to insufficient solvency and inability to pay debts, it went bankrupt. On July 17, 2020, the China Banking and Insurance Regulatory Commission announced that it would take over Yi’an Property Insurance. Until July 2022, the commission agreed in principle for Yi’an Property Insurance to enter bankruptcy reorganization proceedings while publicly recruiting strategic investors.
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Before the official acquisition of Yi’an Property Insurance, BYD had already begun preparations to enter the insurance industry and established BYD Insurance Broker Co., Ltd. In March 2022, the firm was approved for establishment by the Shenzhen Market Supervision Administration.
After BYD officially took over Yi’an Property Insurance, the market speculated that BYD will focus on car insurance, especially developing exclusive insurance for new energy vehicles. BYD will also become another large new energy vehicle company to self-insure after Tesla.
Former President of Swiss Re China, John Chen, said in an interview with Daily Economic News, “The whole vehicle manufacturers of new energy vehicles can achieve the ultimate integration of services and insurance. This model can break through data silos, incorporate insurance into the service value chain, and greatly improve customer experience.”
Chen added, “At the same time, holding critical data can reduce a lot of mistrust and friction that often arise between insurance companies and car dealers due to disconnected data. It can also accurately price risks, greatly improving the reputation of the insurance industry’s reputation.”
In recent years, many electric vehicle manufacturers including Tesla, BYD, NIO, XPeng Motors and Li Auto have already entered the insurance intermediary business field.
