In April, Cheche Group formalised a partnership with Wuhu Jetour Automobile Sales Co Ltd, a subsidiary under Chery Holding Group, to embed its digital insurance services into Jetour’s vehicle sales channels and post-purchase customer experience.
The initiative forms part of a broader movement within China’s automotive industry to integrate insurance into the lifecycle of electric and connected vehicles.
Several leading new energy vehicle (NEV) manufacturers, including Li Auto, Xpeng, and NIO, have adopted Cheche’s insurance SaaS platform to manage new vehicle insurance sales, renewals, and claims digitally.
Lei Zhang, Cheche’s chairman and CEO, noted that customers of these brands can purchase coverage directly via the automaker’s mobile applications.
“For new car deliveries, car owners can purchase insurance directly through the official APP of the auto makers in advance upon picking up their cars, avoiding issues associated with traditional automotive companies such as slow insurance application at stores, lengthy processes, and high labour costs,” he told Insurance Business.
He added that this integrated approach has raised insurance penetration rates among NEV buyers. In many cases, over 90% of new car owners are securing coverage at the point of delivery through the embedded platform.
As part of the embedded model, Cheche collects vehicle usage data, including:
Zhang emphasised that such data could support more refined underwriting.
However, he acknowledged persistent challenges.
“Even though new energy vehicle companies have inherent data advantages, at this moment, both insurance companies and NEV makers are sharing limited data, forming data islands and data silos,” Zhang said.
The cost structure of NEVs – particularly the high expense of battery systems and advanced sensors – continues to put pressure on insurers.
Zhang pointed to the reliance on proprietary repair centres and limited technician availability as contributing to rising claims costs.
To manage this, insurers should look at partnerships with specialised repair networks and consider direct negotiations with parts suppliers. Reducing part costs and ensuring access to skilled labour are both essential.
Insurers may also need to shift toward usage-based pricing models supported by telematics data, while offering incentives for safe driving behaviours.
China’s Insurance Association has developed commercial insurance clauses specific to NEVs. These clauses extend coverage to include electric drive systems and charging infrastructure, while setting exclusions for risks such as battery degradation during charging.
Zhang noted these regulatory updates help align insurance offerings with the technical profile of NEVs.
He also suggested that further policy reform may be needed to accommodate autonomous driving, with liability potentially moving from vehicle owners to manufacturers or software providers.
As embedded insurance and digital distribution models expand, the traditional role of insurance brokers in the motor space is evolving.
Zhang indicated that brokers would need to focus on digital capabilities and explore the managing general agent (MGA) model.
“Auto insurance brokers should also actively explore the MGA model, participating deeply in the development, pricing, and risk management of insurance products to achieve profound cooperation with insurance companies,” he said.
Zhang concluded that the insurance industry will need to continue investing in data infrastructure, cross-sector collaboration, and regulatory readiness to support the ongoing transformation driven by NEVs and connected vehicle technologies.
“These technologies not only assist insurance companies in assessing risks more accurately but also enable them to explore users’ deep needs, providing additional references for precise pricing strategies,” he said.
