Cheche CEO Lei Zhang Highlights the Strategic High Ground of Car Insurance for Auto Makers at China EV100
BEIJING, March 27, 2024 /PRNewswire/ -- Cheche Group Inc. (NASDAQ: CCG) ("Cheche" or the "Company"), China's leading auto insurance technology platform, today announced that Lei Zhang, Founder and co-CEO of Cheche Group, delivered a speech at the recent China EV100 Forum encapsulating the state of the industry and sharing his expectations for the future. China EV100 is a non-profit policy and academic research institution, focused on the field of electric vehicles across disciplines, industries, sectors, and ownership. It is regarded as China's primary third-party think tank in the field of electric vehicles.
The 2024 China EV100 Forum was held from March 15th to the 17th in Beijing, focused on consolidating and expanding the advantages of new energy vehicle ("NEV") development. The Forum attracted industry leaders, experts, and scholars, such as Wang Chuanfu, Chairman of BYD; Wang Jun, President of Changan Automobile; An Conghui, President of Geely Holding Group and CEO of ZEEKR Intelligent Technology Holding Limited; Li Bin, Founder, Chairman and CEO of NIO; He Xiaopeng, Chairman and CEO of Xpeng Motors; Yu Chengdong, Managing Director of Huawei; CEO of Consumer BG and Chairman of Smart Car Solutions Business Unit; Yu Kai, Founder and CEO of Horizon; Zhou Daoxu, Director of the Financial Security Research Center; Wan Gang, Chairman of the China Association for Science and Technology, and others convened to discuss the development trends and challenges of the NEV industry. Remarks frequently underscored the complex and at times conflicting relationships among car makers that challenge them to simultaneously compete and collaborate.
During his keynote speech, Mr. Zhang addressed the current status and development trends of the NEV insurance market, noting that, according to Soochow Securities, the number of NEVs in China is estimated to reach 36.9 million by 2025, with insurance premiums reaching RMB186.5 billion. He went on to say, "The rapid development of NEVs has made auto insurance one of the largest expenses for consumers after the cost of the vehicle. The annual expense is much higher than the costs of charging and maintenance, and as a result, auto makers are increasingly focused on alternatives to strategically deploy insurance. Many auto makers, such as NIO and BMW, have established insurance brokerage companies, with BYD actually acquiring an insurance company. The established insurance companies, in turn, attach great importance to the NEV business and have ramped up investment in science and technology. Top leaders such as PICC, Ping An, China Pacific (CPIC), among others, have set up an independent science and technology entity to conduct special research on insurance for NEVs."
Mr. Zhang went on to illustrate how intelligently connected cars have transformed insurance into an integrated comprehensive service that provides charging, maintenance, 5G network, video and audio-visual subscriptions. Gone are the days of it being a simple financial product. The popularity of autonomous driving has also ushered in new challenges in the division of accident liability. These changes have prompted insurance companies, auto makers, and technology companies to invest significant resources into research and innovation.
He expects auto insurance directly sold by auto makers to drive change in three major ways. Through direct selling of auto insurance, auto makers will be able capture 35% of the accessories/spare parts sales income from aftermarket services, versus 20% with the old model. Direct auto insurance will not only bring front-end commission income to auto makers with insurance licenses, but it will help to increase the rate of back end working hours and spare part costs. And third, repair claims will be seamlessly initiated at the time of impact, ensuring the accident vehicles are fixed within the auto maker's authorized network.
Cheche's self-developed cornerstone system, its core auto insurance transaction platform, has direct links to both auto makers and insurance companies, expanding the digital insurance capabilities of manufacturers. Car owners can apply for insurance independently through the auto maker's app or through the vehicle's display, which greatly reduces the need for intermediate entities and improves the convenience and efficiency of insurance.
Through digital services, Cheche provides auto makers comprehensive and personalized insurance solutions, including new car insurance, one-click renewal, smart claims, and other services. Cheche works with insurance companies to simplify the process off initiating a claim. Car owners need only to click on the mobile app or vehicle display to complete the claim application, improving settlement efficiency. Embedded SaaS functions enable features such as one-click insurance to transmit audio and video data of the accident scene in real time so that the car owner is swiftly apprised of the assessed cost.
He concluded that collaboration from all parties is necessary to strengthen the industry, foster innovation, and pave a successful path forward to ensure the continued appeal and sustainable development of NEVs.
China EV100 will continue to hold a series of industry conferences and conduct research focused on automotive industry policy, cutting-edge technology, supply chain issues, and cross-border integration throughout the year. These results will provide valuable insight and help to guide the continued development of China's NEV industry.
About Cheche Group Inc.
Established in 2014 and headquartered in Beijing, China, Cheche is a leading auto insurance technology platform with a nationwide network of around 110 branches licensed to distribute insurance policies across 25 provinces, autonomous regions, and municipalities in China. Capitalizing on its leading position in auto insurance transaction services, Cheche has evolved into a comprehensive, data-driven technology platform that offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions in China. Learn more at https://www.chechegroup.com/en.
Cheche Group Inc.:
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SOURCE Cheche Group Inc.
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