China's compulsory auto insurance underwriting loss hits 29.6 billion yuan in 2025
China's National Financial Regulatory Administration released audited data for 2025 compulsory traffic accident liability insurance, showing 386 million vehicles insured, 285.2 billion yuan in premiums, and 252.4 billion yuan in claims. The sector recorded an underwriting loss of 29.6 billion yuan, partially offset by 6.6 billion yuan in investment income. Higher personal injury compensation standards and a rising share of new energy vehicles contributed to the loss.
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China's compulsory auto insurance payouts hit 252.4 billion yuan in 2025
According to the National Financial Regulatory Administration (NFRA), China's compulsory traffic accident liability insurance (交强险) paid out 252.4 billion yuan in claims in 2025, a year-on-year increase of 11.6%. The number of insured vehicles reached 386 million, up 3.8%, with total coverage amounting to 76.8 trillion yuan, up 3.4%. Premium income rose 5.2% to 285.2 billion yuan, while the average premium per vehicle fell slightly by 0.1% to 762.1 yuan. The sector recorded an operating loss of 23 billion yuan, attributed to higher personal injury compensation standards and a rising share of new energy vehicles. The NFRA noted that from January to August 2026, the industry's comprehensive cost ratio for auto insurance dropped to 95.8%, reflecting improved management and reduced disorderly competition. The NFRA stated it will continue guiding the insurance industry to enhance the risk protection function of compulsory insurance to support high-quality economic and social development.
Read sourceChina's compulsory auto insurance pays 252.4 billion yuan in claims, boosting social protection
According to the National Financial Regulatory Administration (NFRA), China's compulsory traffic accident liability insurance (交强险) significantly enhanced its role in safeguarding people's livelihoods in 2025. The number of insured motor vehicles reached 386 million, up 3.8% year-on-year, with 347 million cars insured (+3.9%). Total coverage amounted to 76.8 trillion yuan (+3.4%), while claim payments surged 11.6% to 252.4 billion yuan. Premium income grew 5.2% to 285.2 billion yuan, with the average premium per vehicle slightly decreasing by 0.1% to 762.1 yuan. The sector recorded an operating loss of 23 billion yuan, attributed to higher personal injury compensation standards and a rising share of new energy vehicles. From January to August 2026, the industry's comprehensive cost ratio for auto insurance fell to 95.8%, reflecting improved cost management. The NFRA stated it will continue guiding the industry to enhance risk protection and support high-quality economic and social development.
Read sourceChina's 2025 Compulsory Auto Insurance Underwriting Loss Reaches 29.6 Billion Yuan
On September 24, China's National Financial Regulatory Administration (NFRA) released audited financial data for the compulsory auto insurance (交强险) business for the 2025 fiscal year. The report, compiled from 64 insurers including PICC Property and Casualty, covers the period from January 1 to December 31, 2025. Key figures show that insurers underwrote 386 million vehicles, generating 285.2 billion yuan in premiums. Payout costs totaled 252.4 billion yuan, while management and service costs reached 53.8 billion yuan (including 1.07 billion yuan for the relief fund). The underwriting result was a loss of 29.6 billion yuan, partially offset by 6.6 billion yuan in allocated investment income. The data reflects the financial performance of China's mandatory motor insurance scheme, which is regulated by the NFRA.
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China's 2025 Compulsory Auto Insurance Reports 29.6 Billion Yuan Underwriting Loss
According to a report by 格隆汇 on September 24, citing data from the National Financial Regulatory Administration (国家金融监督管理总局), China's compulsory auto insurance (交强险) business recorded an underwriting loss of 29.6 billion yuan in the 2025 fiscal year. The data, audited by accounting firms and submitted by 64 insurers including PICC, showed that insurers covered 386 million vehicles, with total premiums of 285.2 billion yuan. Claims costs reached 252.4 billion yuan, and management and service costs totaled 53.8 billion yuan (including 1.07 billion yuan for the rescue fund). The underwriting loss was partially offset by 6.6 billion yuan in allocated investment income. The report reflects the financial performance of the mandatory insurance scheme as reviewed by the regulator.
Read sourceChina's auto insurance sector posts 29.6 billion yuan underwriting loss in 2025
According to a September 24 report from Jin10, China's National Financial Regulatory Administration (NFRA) has released audited financial data for the mandatory traffic accident liability insurance (交强险) for the 2025 fiscal year. The data, compiled from 64 insurance companies including PICC Property and Casualty, shows that from January 1 to December 31, 2025, insurers covered 386 million motor vehicles. Total premium income reached 285.2 billion yuan, while赔付成本 (compensation costs) were 252.4 billion yuan and management and service costs totaled 53.8 billion yuan (including 1.07 billion yuan for the rescue fund). The underwriting result for 2025 was a loss of 29.6 billion yuan, partially offset by 6.6 billion yuan in allocated investment income. The NFRA audited the specialized financial reports submitted by the insurers.