Source: Financial Times
Reporter: Sun Rong
On 9 24, the National Financial Regulatory Administration released the annual report on compulsory motor vehicle traffic accident liability insurance business for 2025. On the same day, the China Insurance Association held a press conference to discuss the operational status of compulsory traffic accident liability insurance for 2025, providing further interpretation of the relevant data.
Data shows that from 2025, compulsory traffic insurance coverage has continued to expand, protection capabilities have been effectively strengthened, and injury-related coverage has consistently improved. In 2025, the number of insured motor vehicles reached 3.86 billion, up 3.8% year over year; total coverage amount reached 76.8 trillion yuan, up 3.4% year over year; and compensation payouts totaled 2524 billion yuan, up 11.6% year over year.
Steady growth in underwriting scale
Data shows that from 2025-1-1 to 2025-12-31, a total of 64 insurance companies underwriting compulsory traffic accident liability insurance covered 3.86 billion motor vehicles nationwide, representing a year-over-year increase of 3.8%. Among them, the number of insured cars reached 3.47 billion, up 3.9% year-over-year.
Regarding premiums and claims, in 2025, compulsory traffic insurance premium revenue was 2852 billion yuan, a year-over-year increase of 5.2%; claim costs were 2524 billion yuan, up 11.6% year-over-year; management and service costs totaled 538 billion yuan (including 10.7 billion yuan for the relief fund).
Driven by higher personal injury compensation standards and a growing share of new energy vehicles, the compulsory traffic insurance underwriting loss reached 296 billion yuan in 2025, offset by investment income of 66 billion yuan, resulting in an operating loss of 230 billion yuan for that year.
Notably, despite expanded coverage and enhanced support, consumers' auto insurance costs have not increased. In 2025, the average premium for compulsory traffic accident liability insurance was 762.1 yuan, down 0.1% year-over-year, remaining largely stable overall. Furthermore, as regulatory oversight has strengthened and industry practices have curbed无序 competition, operating performance has continued to improve; from 1 to 8 in 2026, the industry's combined ratio for auto insurance dropped to 95.8%.
Accelerating Digital Claims Processing
At the press conference, Wang Simiao, Chief Officer of the Insurance Association, stated that since the comprehensive reform of auto insurance in 2020, the compulsory traffic accident liability insurance coverage limit has increased from 12.2 to 20 thousand yuan, providing more adequate protection for victims of traffic accidents.
Continuous improvement in injury protection. In 2025, the proportion of claims for personal injury accidents to total accident claims increased from 16% to 18%, further highlighting our commitment to protecting all road users, including those riding non-motorized vehicles.
Claims services continue to improve. In 2025, compulsory traffic insurance recorded 5135.9 claims, a year-over-year increase of 7.3%, significantly outpacing the growth in registered vehicles (3.8%). The insurance industry is accelerating "fast claims" implementation through digital tools such as video surveys and AI-based damage assessment.
Human-centric care with a warmer touch. Insurance companies now offer upgraded advance payment services for traffic accident victims, including priority hospital access and full upfront coverage, ensuring faster medical treatment.
The "Good Car Insurance" platform shows results.
To address the challenge of insuring high-claim-risk vehicles, under the guidance of the National Financial Regulatory Administration, the Insurance Association has guided property and casualty insurers to establish a risk-sharing mechanism. The Shanghai Insurance Exchange is responsible for building and operating the "Good Car Insurance" platform.
At the press conference, Xue Chunfang, Deputy General Manager of Shanghai Insurance Exchange, introduced that the platform launched in 2025 1, expanding from new energy vehicle pilots to fuel-powered commercial vehicles. The platform operates with standardized and transparent procedures, eliminating intermediaries throughout the entire insurance process and charging no intermediary fees. By the end of 2025, the platform had integrated 37 property and casualty insurers, serving 36 regions nationwide, with registered users exceeding 163 million, successfully facilitating insurance for over 130 million vehicle trips, and providing risk coverage exceeding 1.3 trillion yuan.
The National Financial Regulatory Administration stated that it will guide the insurance industry to continuously enhance the risk protection level of compulsory traffic accident liability insurance, helping to strengthen the economic security network, social security network, and disaster protection network. This will support high-quality economic and social development through high-quality insurance services.
