Beijing Financial Regulatory Bureau: Leading the development and application of intelligent driving car insurance, compatible with all levels from L2 to L4

On March 29, the Beijing Financial Regulatory Administration announced that it has taken the lead nationwide in launching the development and application of commercial auto insurance for intelligent connected and networked (ICN) new energy vehicles. Relevant dedicated insurance products will be optimized and upgraded on top of existing new energy vehicle insurance, achieving unified coverage for ICN vehicles at all levels from L2 to L4.

According to information, compared with existing commercial motor vehicle insurance (hereinafter referred to as auto insurance), the new product pricing will overall remain stable, and will be adjusted appropriately in response to changes in coverage scope and responsibilities. Going forward, as experience data is accumulated and technology advances, factors such as automakers’ capabilities in intelligent driving will also be incorporated into the insurance pricing system.

Specifically, the head of the Beijing Financial Regulatory Administration said that for L2-level assisted driving vehicles, the dedicated product will initially mainly apply to new energy brand-new vehicles. After purchasing a new vehicle in Beijing, vehicle owners may choose to buy the dedicated product or the existing auto insurance product. Automakers and the insurance industry will complete system upgrades and data exchange accordingly, and the Beijing Insurance Industry Association will release in batches the automakers and specific vehicle models to which the dedicated products apply.

For L3 and L4-level autonomous driving vehicles, the dedicated products can be used for vehicles that carry out legally and in compliance with regulations testing in Beijing or have obtained formal permission to drive on public roads. The head of the Beijing Financial Regulatory Administration said that, with the accumulation of operational data from the dedicated products and underwriting and claims experience, the program will gradually be expanded, so that more vehicle owners can buy the dedicated products as soon as possible.

In recent years, the intelligent connected vehicle industry has developed rapidly, and cutting-edge technologies such as intelligent driving have been widely applied, changing risk factors, scenarios, and loss patterns of traffic accidents. Existing auto insurance can no longer accurately adapt to intelligent connected vehicles’ unique use scenarios and losses of software and hardware equipment, among other situations.

The head of the Beijing Financial Regulatory Administration pointed out that the reason dedicated products keep the existing auto insurance product system is mainly based on considerations such as legal consistency, protecting the rights and interests of victims, and empowering industry innovation.

“Years of practice have shown that the existing auto insurance product system and traffic accident handling model operate steadily and effectively, and related road traffic management measures and supporting initiatives are already in place. By keeping the auto insurance product system, the dedicated products remain consistent with the Civil Code’s provisions that motor vehicle traffic accident liability is borne by the motor vehicle party. This can effectively balance the interests and demands of all parties,” the head of the Beijing Financial Regulatory Administration said. At the same time, it is conducive to handling and compensating victims of road traffic accidents efficiently and promptly, supporting the maximization of rapid resolution of disputes arising from traffic accidents, and avoiding issues such as multiple potential responsible parties, complex causes, and lengthy times required for assessment that could arise when trying to hold product liability of intelligent driving systems, potentially preventing victims from receiving timely compensation and relief.

At present, the Beijing Financial Regulatory Administration, together with the China Insurance Industry Association, the China Institute of Actuaries, and major insurance companies, has formed a special working group to pool industry resources to develop the terms of dedicated products, perform premium rate calculations, and price in a scientific and rational manner. Meanwhile, it has established a cross-industry data exchange mechanism with China Financial Telecommunications and Information Technology Institute (China Insurance Data Service Co., Ltd.), to promote insurance companies’ information system renovation and upgrading, ensuring the issuance and sales of dedicated products and efficient claims handling.

In addition, the Beijing Insurance Industry Association has organized each insurance company to solidly carry out all preparations for product implementation, to study and formulate unified industry standards for underwriting and claims practice, to strengthen professional training for practitioners, and to conduct end-to-end simulated testing.