China’s EV insurers move towards profitability on higher premiums, AI adoption
South China Morning Post
by Daniel RenFebruary 23, 2026
AI-Generated Deep Dive Summary
China’s electric vehicle (EV) insurance sector is showing signs of turning profitable, driven by higher premiums, advanced pricing strategies, and improved claims management efficiency. Insurers are adopting intelligent pricing mechanisms powered by AI, which helps them assess risk more accurately and set competitive yet sustainable premium rates. Additionally, enhanced claims-handling processes are reducing costs and improving customer satisfaction. These developments come at a time when the broader automotive sector in China faces challenges, with a bearish outlook for traditional fuel-powered vehicles.
The shift toward profitability in EV insurance is particularly significant given the rapid growth of the electric vehicle market in China. With automakers focusing more on electrification to meet government regulations and consumer demand, the insurance industry is adapting to keep pace. Industry experts believe that the improved financial health of EV insurers will further accelerate the adoption of electric vehicles across the country’s roads.
This turnaround matters not only for China’s domestic automotive and insurance industries but also for global trends in sustainable transportation. As the world’s largest market for electric vehicles, China’s progress in EV insurance could set a benchmark for other countries. The ability of insurers to balance profitability with innovation highlights the potential for AI-driven solutions to transform traditional industries, offering a model that could be replicated elsewhere.
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Originally published on South China Morning Post on 2/23/2026