"Xiaomi Car Insurance" Is Here? Faarbo Tianxing Insurance Responds

Recently, several Xiaomi car owners have posted on various public platforms, stating that while renewing their insurance for their beloved cars (Xiaomi vehicles), they discovered that Xiaomi has quietly launched “Xiaomi Car Insurance.” The actual underwriter of this product is Beijing Faba Tianxing Property & Casualty Insurance Co., Ltd. (hereinafter referred to as Faba Tianxing Insurance).

“Operated independently, Xiaomi is only one of our company’s shareholders,” a staff member from Faba Tianxing Insurance told reporters today (March 11). Regarding the relationship between Xiaomi Group and Faba Tianxing Insurance, Xiaomi Group staff also stated that Faba Tianxing Insurance is an independent company, and Xiaomi Group is only an investor.

On March 11, a reporter from Daily Economic News uncovered the mystery of this insurance product through interviews and experiencing the insurance process.

Launched on March 5, Pilot in Beijing for Limited Renewal

According to Xiaomi Auto staff, currently, the main insurance companies collaborating with Xiaomi Auto include Pacific Insurance (601601), China Life (601628), Ping An Insurance (601318), PICC, Sunshine Insurance, and Faba Tianxing Insurance invested by Xiaomi Auto. “Faba Tianxing Insurance was established through joint investment by Xiaomi Group and two other Fortune 500 companies, operating globally in insurance,” the staff member revealed. Faba Tianxing Insurance is expected to officially launch in early March, primarily conducting small-scale pilots in Beijing, and has not yet opened to users elsewhere.

“Operated independently, Xiaomi is only one of our company’s shareholders,” a Faba Tianxing Insurance staff member told reporters. Regarding the relationship between Xiaomi Group and Faba Tianxing Insurance, Xiaomi staff also said that Faba Tianxing Insurance is an independent company, and Xiaomi is only an investor.

Faba Tianxing Insurance also told reporters that on March 5, 2026, it began pilot renewal services in Beijing. “Currently, we only operate in Beijing, and will announce further plans at an appropriate time,” the company said.

A reporter from Daily Economic News noted that besides actively expanding on Xiaomi’s platform, Faba Tianxing Insurance has also signed strategic cooperation agreements with Golden Standard Volkswagen and Cheche Technology. The three parties will focus on new energy vehicle insurance, product innovation, intelligent pricing, autonomous driving liability, renewal services, and car ecosystem insurance products, jointly building a comprehensive digital insurance service system covering the entire lifecycle of vehicle owners. “We look forward to developing intelligent driving insurance and scenario-based products that match new energy vehicle technology, integrating auto sales, insurance, and after-sales resources to create a one-stop solution and set a new benchmark for cross-sector collaboration,” said Zhu Rengong, General Manager of Faba Tianxing Insurance.

“In this cooperation, Golden Standard Volkswagen mainly provides scenarios and user access points, and the three parties work together to build an insurance service ecosystem based on car owner needs,” an insider told Daily Economic News. The cooperation is not limited to auto insurance but also includes some non-vehicle insurance businesses.

Since pilot business has begun, how are Faba Tianxing Insurance’s auto insurance prices? A Xiaomi car owner shared that last year, their insurance was with Pacific Insurance (601601), with a premium quote of 5,024 yuan, while the quoted premium from Faba Tianxing Insurance was 4,794.65 yuan. Other insurers quoted 6,657 yuan and 6,671 yuan, respectively.

In response, Faba Tianxing Insurance said that their quotes are not the lowest in the market but are based on their own pricing models. “Our pricing follows the principle of risk and cost matching and complies with regulatory requirements. Premiums vary depending on risk characteristics,” the company emphasized.

Some netizens have reported that Faba Tianxing Insurance uses UBI (Usage-Based Insurance). Public information indicates that UBI insurance is essentially “driving behavior determines the premium,” not a one-size-fits-all based on car model or age. For example, if you drive steadily and brake gently, your premium will be cheaper; frequent rapid acceleration or late-night driving may increase your premium. The pricing logic involves monitoring driving habits via onboard devices or apps (such as sudden acceleration, speeding, driving duration), with lower risk leading to lower premiums.

A Xiaomi staff member also told reporters that the premium amount mainly depends on the vehicle’s accident history and driving habits, assessed comprehensively.

“Automaker + Technology” Dual Drive May Promote More Precise Car Insurance Pricing

If the premium isn’t the lowest, why is Faba Tianxing Insurance’s pricing still so attention-grabbing? This is closely related to its shareholder background.

As Xiaomi’s property insurance institution, Faba Tianxing Insurance has attracted attention since its inception, not only because it will become China’s 91st property insurance company but also due to its unique shareholder composition.

According to Tianyancha, Beijing Faba Tianxing Property & Casualty Insurance Co., Ltd. (Faba Tianxing Insurance) was established on December 16, 2025, with a registered capital of 1 billion yuan. It was jointly invested by the France Paris Insurance Group, Sichuan Yinmi Technology Co., Ltd., and Volkswagen Financial Services Overseas, holding 49%, 33%, and 18%, respectively.

Sichuan Yinmi Technology is wholly owned by Beijing Xiaomi Electronic Software Technology Co., Ltd., in which Lei Jun personally holds 90%.

From the disclosed information, Faba Tianxing Insurance’s shareholder structure is quite unique, combining international insurance giant (France Paris Insurance Group), Chinese tech enterprise (Xiaomi Group), and European auto finance giant (Volkswagen Group).

This shareholder lineup has sparked market imagination about Faba Tianxing’s development. Postdoctoral researcher and professor Zhu Junsen from Peking University’s Applied Economics Department previously told Daily Economic News that the addition of Volkswagen Financial Services and Xiaomi’s ecosystem suggests Faba Tianxing Insurance has natural advantages in connected vehicle insurance, intelligent pricing, and IoT device insurance. In the future, they may explore innovative scenarios like “smart car insurance” and “data-driven vehicle pricing,” further promoting the market’s move toward refined and data-driven insurance.

The Daily Economic News also noted that although new energy vehicles have developed rapidly in recent years, their different drive principles, component layouts, and maintenance methods from traditional cars make precise pricing difficult. The “Guarding Innovation: 2024 New Energy Vehicle Insurance Development Report” states that differences between new energy vehicles and traditional fuel cars can be categorized into two main types: key component differences and system differences.

Specifically, the core components of new energy vehicles are the “three-electric” system (battery, motor, and electronic control system), which differ significantly in risk from traditional engine and transmission systems. Additionally, since new energy vehicles often feature intelligent systems (autonomous driving, vehicle networking, smart cabins, human-vehicle interaction), potential issues like loss of control or system crashes are not as common in less intelligent traditional fuel cars. Moreover, due to the heavy load of batteries, integrated casting is more widely used in manufacturing to reduce weight, differing markedly from the modular casting processes of traditional cars.

These reasons make it difficult for insurers to profit from new energy vehicle insurance underwriting, leading some to shy away from this market. Meanwhile, this signals to the market that traditional car insurance logic is not suitable for new energy vehicles, and insurers need to adjust their old business models.

This is where Faba Tianxing Insurance, with its automaker and tech background, comes into play, allowing it to leverage technology and new car manufacturing insights to develop insurance products tailored to new energy vehicles.

Zhu Junsen said that although the property insurance market is currently crowded, the introduction of a new company can accelerate reforms in product design, digital services, and channel development. Especially for niche and mid-to-high-end markets, this can help create a more diverse and value-creating competitive landscape.

Can New Energy Vehicle Companies’ Entry Shake Up the Market?

It should be noted that Faba Tianxing Insurance is a microcosm of the influx of new energy vehicle companies into the insurance industry. In recent years, many EV manufacturers have attempted to enter insurance through acquisitions or establishing insurance brokerages or companies.

For example, in June 2022, Li Auto acquired Yinjian Insurance Brokerage and renamed it Beijing Li Auto Insurance Brokerage; at the end of 2022, NIO also acquired Huiding Insurance Brokerage, which was renamed NIO Insurance Brokerage; in June 2023, BYD fully acquired Yian Property & Casualty Insurance, obtained an insurance license, and expanded into multiple regional markets.

Compared to entering via insurance brokerages, directly establishing an insurance company allows automakers to better control pricing trends and actuarial models from the source, providing more valuable data for traditional insurers and markets. So, how is BYD’s own insurance company, BYD Insurance, performing?

According to the Q4 2025 solvency report, BYD Insurance achieved an insurance business income of 2.871 billion yuan last year, doubling from the previous year; net profit turned positive at 93.62 million yuan, up from a loss of 169 million yuan in 2024. The core reason for profit turnaround was significant improvement in the “three ratios” at the underwriting end. In 2025, BYD Insurance’s combined ratio dropped to 102.49%, a sharp decline from 308.81% in 2024. The loss ratio was 97.28%, and the expense ratio was only 5.21%, both well below industry averages.

Additionally, direct sales became the key to cost control. Unlike traditional insurers relying on intermediaries, BYD Insurance’s premiums in 2025 were entirely from direct channels, with 0% commissions and fees, bypassing high-cost agency and broker channels. Also, BYD Insurance had 13 major related-party transactions with BYD Auto, totaling over 416 million yuan.

Meanwhile, the average premium per vehicle decreased from about 4,900 yuan in Q2 2024 to around 3,800 yuan at the end of 2025. This indicates that, even without changing the insured objects, BYD Insurance has optimized its pricing through continuous exploration and operation, benefiting vehicle owners with lower premiums.

BYD Insurance’s operational data provides a good reference for new energy vehicle companies entering insurance, demonstrating that they can reduce operational pressure through convenient sales channels and improved insurance ecosystems.

Whether Faba Tianxing Insurance can achieve rapid profitability and growth like BYD remains to be seen, and only time will tell.