China's EV Boom Saddles Its Auto Insurers With Chronic Losses

China's EV Boom Saddles Its Auto Insurers With Chronic Losses

(Bloomberg) — China’s giant electric vehicle insurance market is flailing. Losses are piling up, as companies’ risk models haven’t kept up with changes in vehicle economics and driver behaviors.

China’s EV insurance market bleeds billions as claims surge

China’s once-booming electric vehicle (EV) insurance business is fast becoming a money-losing sector. Claims are growing faster than expected, and insurers are losing billions of yuan annually. The issue is that EV adoption in the country has outpaced insurers’ antiquated tools to price risk. As a result, one of the world’s most advanced EV markets has become a battleground for insurers. China has the world’s largest number of EVs on the road. M…