According to a Chinese media Cailian News Agency report, NIO, the well-known new energy vehicle Chinese company, has established a new insurance brokerage company with a total capital of 7.9 million US dollars. The business content includes insurance brokerage businesses and insurance agencies. This move replicates Tesla, which also established an insurance company in Shanghai, China, in 2020, trying to increase customer stickiness through the joint sales of cars and car insurances to create a complete service ecological chain.
Compared with traditional fuel vehicles, the business models of new energy vehicle companies is different. New energy vehicle companies pay more attention to the integration of the ecological chain than traditional car companies. Take car insurance as an example, before setting up its own insurance brokerage company, the car insurance packages launched by NIO in cooperation with other insurance companies already can design different insurance contents for different models, such as after-sales maintenance, scratch paint, door-to-door service, maintenance and other services. However, the advantage of a new energy car brand launching its own insurance company is that the maintenance of the three-electric system and the traditional mechanical parts are completely different fields from technology accessories to maintenance.
Third-party insurance companies cannot have precise control over after-sales maintenance due to the complete closed-loop industrial chain. In addition, the scope of liability in traditional car insurance cannot cover all the specific risk factors faced by new energy vehicles, including battery failure, charging failure liability etc. Therefore, it will be difficult for new energy vehicle owners to claim after a risk occurs. Handing over to the car brand’s own insurance brokerage company can greatly reduce this disadvantage.
With the gradual expansion of the new energy vehicle market, the demand for new energy vehicle insurance will increase. It may become an essential feature in the future. Electric vehicles are a whole new world for many users. Under such unknowns, auto insurance can provide users with better protection. At the same time, they can increase their own income, thus creating a win-win situation.