New energy vehicle insurance incurred a underwriting loss of 5.6 billion yuan last year; multiple banks in Shanghai have implemented domestic freight foreign exchange payment facilitation services | Financial Morning Brief

|April 2, 2026, Thursday|

NO.1 **** Li Yunze Meets with the Chair of the Administrative Management Committee of the Monetary Authority of Macao, Huang Shanwen

On March 31, Li Yunze, Party Secretary and Director of the National Financial Regulatory Administration, met with Huang Shanwen, Chair of the Administrative Management Committee of the Monetary Authority of Macao, and his delegation. The two sides exchanged views on strengthening regulatory cooperation between the two places, deepening financial market interconnectivity and mutual accessibility in the Guangdong-Hong Kong-Macao Greater Bay Area, and supporting Macao’s economic development, among other topics.

NO.2 **** Multiple Banks in Shanghai Roll Out Domestic Freight-Related Foreign Exchange Payment Facilitation Businesses

On April 1, with guidance from the Shanghai branch of the State Administration of Foreign Exchange, the Industrial and Commercial Bank of China’s Shanghai Municipal Branch, relying on the cross-border financial services platform, took the lead in rolling out application-scenario business for domestic freight-related foreign exchange payment facilitation for multiple enterprises under its jurisdiction. On the very same day, the China Construction Bank’s Shanghai Municipal Branch completed the rollout of the first batch of business in the new scenarios. Within just one day, the bank completed freight invoice verification and remittance confirmation for 22 domestic enterprises, totaling 49 transactions, with a total value of 769,000 USD.

Commentary: Relying on the State Administration of Foreign Exchange’s cross-border financial services platform, the platform connects with the invoice data of the Shanghai Municipal Taxation Bureau through the aviation-shipping trade blockchain network. In the bank system, it can automatically verify the authenticity, validity, and whether VAT invoices have been used more than once. Enterprises no longer need to repeatedly submit paper materials; remittance efficiency is greatly improved, and “foot-costs” are nearly zero. The bank also gains a real, trustworthy, and rapid verification channel, significantly easing business expansion pressure.

**NO.3 **** New Energy Vehicle Insurance Suffered an Underwriting Loss of 5.6 Billion Yuan Last Year

Recently, data released by the China Institute of Actuaries and China Banking and Insurance Information Technology Management Co., Ltd. show that in 2025, China’s insurance industry underwrote 43.58 million new energy vehicles, corresponding to premium income of 190 billion yuan, providing risk protection totaling 159 trillion yuan. Meanwhile, underwriting losses in the industry reached 5.6 billion yuan, which represents a year-on-year reduction of losses by 100 million yuan, and the combined cost ratio declined by 1.3 percentage points year-on-year.

Commentary: As the penetration rate of new energy vehicles increases rapidly, in 2025, the share of new energy vehicles in the industry’s auto insurance underwriting already reached 12.75%, which has a crucial impact on profitability of auto insurance. However, behind the contradiction of “high premiums” and “high claims” in new energy vehicle insurance today, there is a profound mismatch between traditional auto insurance product structures and the structural characteristics of new energy vehicles.

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