NIO’s Insurance Brokerage Company Closed

NIO’s insurance coverage brokerage firm, established in January 2022, not too long ago initiated a easy cancellation. The registered capital of the corporate is 50 million yuan ($7.25 million).

According to rules, if a nationwide insurance coverage brokerage establishment applies for operation, it shall be accepted and given a preliminary examination by native banking insurance coverage regulatory commissions. However, NIO‘s insurance coverage subsidiary has not been authorised by the regulator.

In reality, for the reason that China Banking and Insurance Regulatory Commission authorised China Southern Airlines Insurance Brokerage Co., Ltd. on July 11, 2018, it has by no means authorised another insurance coverage brokerage firm. Media outlet Beijing Business Today reported that in 2022, native regulators had canceled or deliberate to cancel 1,870 insurance coverage intermediaries.

Jiemian News quoted Song Zhanjun, deputy secretary-general of the Insurance Research Center of Beijing Technology and Business University, as saying that in recent times, insurance coverage supervision has turn out to be standardized, elevating necessities for the data system development of the insurance coverage middleman business.

Some insiders identified that after 2018, the China Banking and Insurance Regulatory Commission has not issued any new middleman licenses, however numerous insurance coverage middleman licenses have been transferred, which could be the future improvement pattern. “At present, there are more than 2,000 insurance intermediary companies in China, but most of them are not operating in an ideal state, and more than 700 of them garner an annual income of less than 1 million yuan. Previously, regulators issued a notice to encourage insurance intermediaries to carry out equity swaps.”

On October 21, 2022, NIO established Anhui NIO Data Technology Co., Ltd. with a registered capital of 100 million yuan. On December 12, the corporate acquired Huiding Insurance Brokerage Co., Ltd. and obtained its insurance coverage middleman license.

In addition to NIO, in the beginning of this yr, BYD’s acquisition of 1An.com, an insurance coverage firm, brought on heated dialogue. Prior to this, BYD Insurance Brokerage Co was authorised to be established in March final yr.

SEE ALSO: BYD Acquires an Internet Insurance Company for $530M

It has turn out to be a typical transfer for automotive firms, particularly electrical automobile enterprises, to become involved within the insurance coverage business. iResearch Consulting Group identified that auto insurance coverage, as the primary product that buyers come into contact with after shopping for a automotive, can be utilized as an entrance to serve automotive homeowners due to its just-needed attributes. Car firms can take auto insurance coverage as the start line to develop the next revenue, after-car ecological system.

With extra rules and applied sciences equivalent to huge knowledge, synthetic intelligence, cloud computing and blockchain, the insurance coverage middleman market is going through a number of new alternatives.

Sign up at the moment for five free articles month-to-month!