China’s compulsory auto insurance posts 23 billion yuan operating loss in 2025 as claims surge 11.6%
China’s National Financial Regulatory Administration reported on September 24, 2025, that compulsory auto insurance covered 386 million vehicles in 2025, up 3.8% year-on-year. Premium income rose 5.2% to 285.2 billion yuan, but 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. Industry executives attributed rising costs to increased vehicle usage, higher personal injury compensation standards, rising medical costs, rapid growth of new energy vehicles, 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 2025 Compulsory Auto Insurance Payouts Reach 252.4 Billion Yuan, Up 11.6%
According to data released by China's National Financial Regulatory Administration (NFRA) on September 24, 2025, the country's compulsory auto insurance (交强险) payouts reached 252.4 billion yuan in 2025, a year-on-year increase of 11.6%. The number of insured motor vehicles grew to 386 million, up 3.8% from the previous year, while total coverage amounted to 76.8 trillion yuan. Premium income rose 5.2% to 285.2 billion yuan, with the average annual premium per vehicle slightly decreasing by 0.1% to 762.1 yuan. The article notes that the payout growth significantly outpaced premium growth, highlighting the insurance's public welfare nature. However, the sector recorded a loss of 23 billion yuan in 2025, attributed to higher personal injury compensation standards and an increased share of new energy vehicles. The NFRA stated it will continue guiding the industry to enhance the insurance's risk protection level. The report also covers the 'Chexian Hao Toubao' platform, which by end-2025 had helped over 1.3 million vehicles obtain insurance, with taxis, ride-hailing vehicles, and trucks accounting for 81% of its insured vehicles. The article includes commentary from the China Insurance行业协会 and Ping An Property & Casualty Insurance on industry initiatives such as disaster response and police-insurance collaboration.
Read sourceChina compulsory auto insurance covers 386 million vehicles in 2025, up 3.8% year-on-year
On September 24, China's National Financial Regulatory Administration released data showing that in 2025, compulsory traffic accident liability insurance (交强险) coverage expanded to 386 million insured motor vehicles, a 3.8% year-on-year increase. Total insured amount reached 76.8 trillion yuan, up 3.4%. Claim payments surged 11.6% to 252.4 billion yuan, while premium income rose 5.2% to 285.2 billion yuan. The average premium per vehicle was 762.1 yuan, down 0.1%. The insurance industry posted an underwriting loss of 29.6 billion yuan for compulsory insurance, with investment income of 6.6 billion yuan. The China Insurance Association attributed rising claim costs to five factors: increased vehicle usage intensity, higher personal injury compensation standards, structural increases in medical costs, rapid growth in new energy vehicle ownership (which now accounts for 12.1% of insured vehicles), and improved claims services making more claims visible. The 'Chexian Hao Toubao' online platform, launched in January 2025, has helped over 1.3 million vehicles obtain insurance, with 81% of its policies covering taxis, ride-hailing vehicles, and trucks. Expert Long Ge from the University of International Business and Economics noted that the gap between claim growth and premium growth reflects structural trends and that the system is effectively fulfilling its social protection role.
China's compulsory auto insurance covers 386 million vehicles in 2025, up 3.8% year-on-year
On September 24, China's National Financial Regulatory Administration released data showing that in 2025, compulsory auto insurance (交强险) coverage expanded to 386 million insured motor vehicles, a 3.8% year-on-year increase. Automobile coverage reached 347 million vehicles, up 3.9%. Total coverage amount reached 76.8 trillion yuan, up 3.4%. Claim payments totaled 252.4 billion yuan, surging 11.6% year-on-year, while premium income rose 5.2% to 285.2 billion yuan. The average premium per vehicle was 762.1 yuan, down 0.1%. The sector posted an underwriting loss of 29.6 billion yuan, with investment income of 6.6 billion yuan. The Insurance Association of China attributed rising claim costs to five factors: increased vehicle usage, higher personal injury compensation standards, rising medical costs, rapid growth of new energy vehicles (which have higher claim frequency and repair costs), and expanded claim reporting due to improved services. An expert from the University of International Business and Economics noted the gap between claim growth and premium growth is structural and reflects the system's effectiveness. The 'Chexian Hao Toubao' platform, launched in January 2025, facilitated insurance for over 1.3 million vehicles, with 81% being taxis, ride-hailing cars, and trucks.
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China's Compulsory Auto Insurance Posts 23 Billion Yuan Operating Loss in 2025
China's compulsory auto insurance (交强险) recorded an operating loss of 23 billion yuan in 2025, according to data released by the National Financial Regulatory Administration on September 24. The loss was driven by rising claim costs, including higher compensation standards for personal injury, an increasing share of new energy vehicles (NEVs), and higher vehicle usage intensity. Total premium income reached 285.2 billion yuan, up 5.2% year-on-year, while赔付支出 (claim payments) surged 11.6% to 252.4 billion yuan. The number of insured vehicles grew 3.8% to 386 million. Experts attributed the loss to structural factors such as rising medical costs and the 'two highs' (higher accident frequency and repair costs) of NEVs. Separately, the industry launched the 'Chexian Hao Toubao' platform to facilitate insurance access for high-risk vehicles, covering over 1.3 million vehicles by end-2025. The platform focuses on taxis, ride-hailing cars, and trucks, which account for 81% of its insured vehicles.
Read sourceChina'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 Covers 386M Vehicles, Average Premium Falls 0.1%
China's financial regulator reported that in 2025, compulsory auto insurance (交强险) coverage expanded to 386 million vehicles, up 3.8% year-on-year. 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 payout 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. Experts attributed the loss to rising claim frequency due to increased vehicle usage, higher personal injury compensation standards, rising medical costs, a growing share of new energy vehicles with higher loss ratios, and improved claims services that made previously unreported claims visible. The industry launched the 'Chexian Hao Toubao' platform to help high-risk vehicles obtain insurance, serving over 1.3 million vehicles by year-end. The platform, operated by Shanghai Insurance Exchange, covers 36 regions and 37 insurers, with 81% of insured vehicles being taxis, ride-hailing cars, and trucks.
Read sourceChina's 2025 compulsory auto insurance covers 386M vehicles, average premium 762.1 yuan, down 0.1%
China's financial regulator reported that in 2025, compulsory auto insurance (交强险) covered 386 million vehicles, up 3.8% year-on-year, with total insured amount reaching 76.8 trillion yuan (+3.4%). Premium income was 285.2 billion yuan (+5.2%), while the average premium per vehicle was 762.1 yuan, down 0.1%. Claims paid totaled 252.4 billion yuan, a sharp 11.6% increase, leading to an underwriting loss of 29.6 billion yuan and an overall operating loss of 23 billion yuan. Experts attributed the loss to rising claim frequency due to increased vehicle usage, higher personal injury compensation standards, rising medical costs, a growing share of new energy vehicles (which have higher claim frequency and repair costs), and improved claims services that brought more cases into the system. The industry launched the 'Chexian Hao Toubao' platform to help high-risk vehicles obtain insurance, serving over 1.3 million vehicles by year-end. The regulator noted that from January to August 2026, the industry's combined ratio fell to 95.8%, indicating improving cost management.
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.
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, leading to an underwriting loss of 29.6 billion yuan and an overall operating loss of 23 billion yuan after investment income. 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) claims (NEVs now account for 12.1% of insured vehicles and exhibit higher accident frequency and repair costs), and the 'explicit' effect of improved claims services. The 'Chexian Hao Toubao' platform, launched to address insurance access issues for high-risk NEVs and commercial vehicles, facilitated smooth insurance for over 1.3 million vehicles by end-2025. The regulator noted that from January to August 2026, the industry's comprehensive cost ratio for auto insurance fell to 95.8%.
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 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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