Identifying Blind Spots and Optimisation Pathways in Special Insurance Terms for New Energy Vehicles: A perspective Based on Risk Grading and Dynamic Pricing

Because of global warming, energy shortages, and other issues, new energy vehicles have become the top choice for more and more people when buying a car. As new energy vehicle technology keeps getting better and better, and people start to see the benefits of new energy vehicles, like lower fuel costs, more comfort, and more in-car tech, the public is starting to accept the fact that new energy vehicles are replacing traditional fuel vehicles. However, purchasing complementary insurance for new energy vehicles has become a very different problem. This paper analyses the issues of high premiums and pricing difficulties in new energy vehicle insurance through a review of multiple relevant articles. It identifies the causes of high premiums, high accident rates, and high claim ratios, primarily attributed to the high maintenance costs of new energy vehicles, the rise of the ride-hailing industry, increasing claim risks, and data barriers within the insurance industry. In response to this, this paper draws on the UBI dynamic pricing model in the United States and proposes risk classification, separation of vehicles and batteries, and government policy support in response to the shortcomings of China’s current insurance system. This paper can provide some reference for the development of new energy insurance in China.