The initiative aims to address the unique risks associated with autonomous and connected driving technologies as the market for such vehicles expands.
Traditional motor insurance products are primarily structured around risks related to conventional vehicles. However, the emergence of intelligent and autonomous driving technologies presents new risk considerations. Ping An P&C is working with automakers to refine insurance models based on real-world vehicle performance data.
Through this collaboration, Ping An P&C has introduced an insurance solution that covers risks in various intelligent driving scenarios, including:
This approach is designed to provide coverage tailored to the capabilities of intelligent vehicles.
This partnership marks the first time Ping An P&C has worked with FAW Hongqi on an intelligent vehicle insurance model. The two companies plan to establish a risk database, enhance claims processes, and refine insurance policies to address emerging risks in the intelligent mobility sector.
One example is the Hongqi Tian Gong 08, a new energy vehicle (NEV) model equipped with ultra-low-temperature battery cell technology. The vehicle is designed to retain 93% of its battery energy at temperatures as low as -10°C. In response, Ping An P&C has developed a compensation plan for battery-related failures due to low temperatures, covering both repair costs and the provision of a temporary replacement vehicle.
Ping An P&C has also partnered with Seres Automobile Co Ltd to introduce similar insurance solutions, signalling a broader strategy to work with NEV manufacturers on risk management solutions tailored to emerging vehicle technologies.
The partnership reflects the growing role of intelligent vehicle insurance as the motor insurance sector in the Asia-Pacific (APAC) region is projected to grow at a compound annual growth rate (CAGR) of 5.6% over the next five years, with total written premiums expected to rise from US$229.2 billion in 2024 to approximately US$301.7 billion by 2029, according to research from Global Data.
China, Japan, Australia, South Korea, and India account for the majority of the region’s motor insurance market.
Market growth is driven by rising vehicle sales, an expanding electric vehicle (EV) market, regulatory changes, and advancements in digital insurance solutions.
Swarup Kumar Sahoo, a senior insurance analyst at GlobalData, said the sector is undergoing structural changes.
“The APAC motor insurance market is witnessing a transformation, driven by the rise of EVs and regulatory changes. The region’s economic growth and demographic shifts are also playing a crucial role in shaping the market dynamics. For instance, the surge in vehicle sales post-COVID-19 has increased motor policy sales,” he said.
As EV adoption increases, insurers are introducing policies specifically designed to cover risks associated with these vehicles. Regulators in Taiwan, Singapore, and China are implementing frameworks for EV insurance products, with government incentives further supporting market expansion.
Insurers are also adopting artificial intelligence and digital tools to enhance underwriting accuracy and operational efficiency.
