2pwc Appoints New China Chairman To Steer Firm Through Evergrande Storm

Electric Cars Are Draining the Batteries of China's Insurers

2PwC Appoints New China Chairman to Steer Firm Through Evergrande Storm

The pickup in Chinese convertible bond issuance is seen as a sign of growing confidence in the country's economy. The Dow fell from highs on Thursday, while the Nasdaq lost earlier gains as investors sold some big tech names. As markets opened in China on Thursday, the People's Bank of China, the central bank, reduced its interest rate for one-year loans to commercial banks. Trading activity in China's largest listed companies has surged to a five-month high, reflecting what analysts said was a likely increase in buying by domestic investors.

Electric cars are draining the batteries of China's insurers. The rapid growth of electric vehicle (EV) sales in China is putting a strain on the country's insurance industry, as insurers struggle to keep up with the increasing number of claims. In 2021, the number of EV claims in China increased by 30%, and insurers are expecting this trend to continue in the coming years.

There are a number of factors that are contributing to the increase in EV claims. First, EVs are more expensive to repair than traditional gasoline-powered vehicles. Second, EVs are more likely to be involved in accidents, as they are often driven by inexperienced drivers. Third, EVs are more likely to be damaged by weather events, such as floods and storms.

The increase in EV claims is putting a strain on the profitability of China's insurance industry. In 2021, the combined underwriting loss of China's property and casualty insurers reached $14 billion, and this loss is expected to widen in the coming years. As a result, insurers are raising premiums for EV owners and reducing the coverage they offer.

The rising cost of EV insurance is a major concern for Chinese consumers, and it could slow the adoption of EVs in the country. In order to address this issue, the Chinese government is considering a number of measures, such as providing subsidies to insurers and developing new insurance products for EVs.