Cheche Group Inc, a leading auto insurance technology platform in China, has entered into a partnership with NIO Insurance Broker Co Ltd (NIO Insurance Broker), subsidiary of NIO Inc (NIO).
This collaboration aims to enhance Cheche’s engagement with new energy vehicle (NEV) manufacturers.
Through this partnership, Cheche will leverage its digital platform to streamline auto insurance processes for NIO, aiming to reduce costs and enable digital management of insurance operations.
The new digital insurance service system is scheduled to launch next quarter.
“The global NEV industry continues to experience substantial growth led by the Chinese NEV manufacturers,” said Lei Zhang, founder, CEO, and chairman of Cheche. “As a trusted service provider for NEV insurance services, we are committed to creating value for NIO and our other partners throughout the product lifecycle and will strive to retain our standing as the leading intelligent insurance platform for NEVs in China.”
This development marks a strategic advancement for Cheche’s NEV insurance operations.
Building on existing relationships with major Chinese NEV manufacturers, Cheche plans to expand its services to other NEV companies, focusing on policy issuance, renewals, contract and claims management, and risk pricing.
The platform aims to help NEV manufacturers strengthen consumer relationships by offering comprehensive insurance solutions, including tailored pricing based on driver behaviour, extensive claims management, and fraud prevention using AI and data analytics.
The motor insurance market in China is expected to grow at a compound annual growth rate of 5.4%, with gross written premiums projected to rise from CNY 912.2 billion (US$127.4 billion) in 2024 to CNY 1,125.7 billion (US$158.9 billion) by 2028, according to GlobalData.
The data and analytics firm’s Insurance Database forecasts a 5.2% growth in 2024, driven by increasing vehicle sales, rising demand for NEVs, and regulatory changes.
“The Chinese motor insurance market has witnessed a consistent growth of 5.6% in 2022 and 2023 after declining by 5.7% in 2021. The recovery in the economy after the prolonged impact of COVID-19 and rising vehicle sales has supported the growth of motor insurance. The trend is expected to continue in 2024 and 2025,” said Sutirtha Dutta, an insurance analyst at GlobalData.
