China's 2025 compulsory auto insurance posts 23 billion yuan loss as claims surge 11.6%
China's compulsory auto insurance (交强险) covered 386 million vehicles in 2025, up 3.8% year-on-year, with total coverage of 76.8 trillion yuan. Premium income rose 5.2% to 285.2 billion yuan, but claims payments surged 11.6% to 252.4 billion yuan, resulting in an underwriting loss of 29.6 billion yuan and an overall operating loss of 23 billion yuan. The National Financial Regulatory Administration attributed rising costs to increased vehicle usage, higher injury compensation standards, medical cost increases, rapid NEV growth, and improved claims processing. The 'Chexian Hao Toubao' platform helped over 1.3 million high-risk vehicles obtain insurance.
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China's compulsory auto insurance covers 386 million vehicles in 2025, average premium down 0.1%
China's compulsory traffic accident liability insurance (交强险) covered 386 million motor vehicles in 2025, up 3.8% year-on-year, according to data released by the National Financial Regulatory Administration on September 24. Total insured amount reached 76.8 trillion yuan, up 3.4%. Premium income rose 5.2% to 285.2 billion yuan, while the average premium per vehicle fell 0.1% to 762.1 yuan. Claims payments surged 11.6% to 252.4 billion yuan, leading to an underwriting loss of 29.6 billion yuan and an overall operating loss of 23 billion yuan. China Life Property & Casualty Insurance assistant president Yu Fei attributed rising claims costs to five factors: increased vehicle usage intensity, higher personal injury compensation standards following the unification of urban-rural standards, structural increases in medical expenses, rapid growth in new energy vehicles (which have higher claim frequency and repair costs), and expanded claim reporting due to improved services. The 'Chexian Hao Toubao' platform, launched in January 2025, helped over 1.3 million vehicles obtain insurance, with 81% being taxis, ride-hailing cars, and trucks. Long Ge, deputy director of the Innovation and Risk Management Research Center at the University of International Business and Economics, noted that the gap between claims growth (11.6%) and premium growth (5.2%) is structural and reflects the system's effectiveness in paying legitimate claims.
Read sourceChina's 2025 Compulsory Auto Insurance Shows 230 Billion Yuan Loss, Payouts Surge
China's financial regulator released the 2025 operating results for compulsory auto insurance (交强险), showing a net operating loss of 230 billion yuan. The number of insured vehicles reached 386 million, up 3.8% year-on-year, with total coverage of 76.8 trillion yuan. Premium income was 285.2 billion yuan, while claims payouts surged 11.6% to 252.4 billion yuan. The underwriting loss widened significantly to 296 billion yuan, partially offset by 66 billion yuan in investment income. Industry experts attributed the rising claims costs to five factors: increased vehicle usage intensity, higher personal injury compensation standards following the unification of urban-rural standards, structural increases in medical costs, rapid growth in new energy vehicles (which have higher claim frequency and repair costs), and improved claims processing that brought more cases into the system. The article also highlighted the 'CheXian HaoTouBao' platform, launched in January 2025, which helped over 1.3 million vehicles, primarily taxis, ride-hailing cars, and trucks, secure insurance coverage. The platform operates without intermediaries and has provided over 1.3 trillion yuan in risk coverage. The regulator noted that industry-wide auto insurance comprehensive cost ratio fell to 95.8% in the first eight months of 2026, indicating ongoing operational improvements.
Read sourceChina's 2025 Compulsory Auto Insurance Shows 230 Billion Yuan Loss, Payouts Surge
China's financial regulator released the 2025 operating results for compulsory auto insurance (交强险), showing a coverage expansion to 386 million insured vehicles, up 3.8% year-on-year. Total premiums reached 285.2 billion yuan, up 5.2%, while payouts surged 11.6% to 252.4 billion yuan. The sector posted an underwriting loss of 29.6 billion yuan and an overall operating loss of 23 billion yuan after investment income. Industry executives attributed the rising payout costs to five factors: increased vehicle usage and accident frequency, higher personal injury compensation standards following the unification of urban-rural standards, rising medical costs, rapid growth in new energy vehicles (NEVs) which have higher claim frequency and repair costs, and improved claims processing that has made previously unreported claims visible. The article also highlights the 'CheXian HaoTouBao' platform, launched in January 2025, which has helped over 1.3 million high-risk vehicles (81% being taxis, ride-hailing cars, and trucks) obtain insurance coverage, addressing a key market concern.
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China's 2025 Compulsory Auto Insurance Shows 230 Billion Yuan Loss, Payouts Surge
China's financial regulator released the 2025 operating results for compulsory auto insurance (交强险), showing a coverage expansion to 386 million insured vehicles, up 3.8% year-on-year. Total premiums reached 285.2 billion yuan, up 5.2%, while average premiums fell slightly to 762.1 yuan. However, the sector posted an operating loss of 23 billion yuan, driven by a sharp 11.6% increase in claim payouts to 252.4 billion yuan. Industry representatives attributed the rising payout costs to five factors: increased vehicle usage frequency, higher personal injury compensation standards following the unification of urban-rural standards, structural increases in medical costs, rapid growth in new energy vehicle (NEV) penetration (12.1% of insured vehicles) with higher accident and repair costs, and expanded claim reporting due to improved services. The 'Chexian Hao Toubao' platform, launched to address insurance access issues for high-risk NEVs and commercial vehicles, facilitated smooth coverage for over 1.3 million vehicles by end-2025. The regulator noted that industry-wide auto insurance comprehensive cost ratio fell to 95.8% in the first eight months of 2026, indicating ongoing operational optimization.
Read sourceChina's 2025 Compulsory Auto Insurance Report: 386 Million Vehicles Insured, Claims Hit 252.4 Billion Yuan
China's financial regulator released the 2025 compulsory auto insurance (交强险) results on September 24, 2025. The report shows 386 million motor vehicles were insured, a 3.8% year-on-year increase, with total coverage of 76.8 trillion yuan. Premium income reached 285.2 billion yuan, up 5.2%, while claims expenditure surged 11.6% to 252.4 billion yuan. The industry posted an underwriting loss of 29.6 billion yuan and an overall operating loss of 23 billion yuan after investment income. Experts from PICC and China Life Property & Casualty attributed rising claims costs to five factors: increased vehicle usage frequency, higher personal injury compensation standards following unified urban-rural standards, structural increases in medical costs, rapid growth in new energy vehicles (NEVs) which have higher accident and repair costs, and improved claims processing that has made previously unreported claims visible. The 'Chexian Hao Toubao' platform, launched in January 2025, has helped over 1.3 million high-risk vehicles (81% taxis, ride-hailing, and trucks) obtain insurance. The regulator noted that from January to August 2026, the industry's comprehensive cost ratio fell to 95.8%, indicating improved cost management.
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