Twice Seized by Regulators, Plagued by Complaints, Sheneng Property Insurance's "Scale Growth" Aftereffects Emerge

In 2025, while many insurance companies struggle to adjust distribution channel costs and seek to reduce expenses and improve efficiency under the regulatory theme of “reporting and operating as one,” a new property insurance company has entered the market as a dark horse.

As a new entity established to take over Tianan Property & Casualty Insurance’s business, ShenNeng Property & Casualty Insurance delivered an astonishing performance in 2025: insurance revenue of approximately 16.56 billion yuan, a year-on-year increase of 371.6%; net profit shifted from a loss of 2.458 billion yuan in 2024 to a profit of 435 million yuan. The premium scale surged to become the fourth-largest non-listed property insurer.

However, alongside these impressive financial results, there are also court enforcement notices.

Recently, platforms like AiQiCha and Tianyancha showed that ShenNeng Property & Casualty Insurance was added as a defendant in enforcement cases, with the enforcement court being Haifeng County People’s Court.

The enforcement target is not large, only 114,600 yuan, but more noteworthy than the amount is that this is the second time ShenNeng Property & Casualty Insurance has been listed as a defendant in a court enforcement action within a short period.

A company founded only two years ago, currently in a period of rapid growth, why does ShenNeng Property & Casualty Insurance repeatedly become a defendant? Meanwhile, in terms of user reputation, platforms like Heimao Complaint and Xiaohongshu have many users expressing dissatisfaction with ShenNeng’s “lack of service” and “difficult claims.”

Tracing back the roots, whether it’s the accumulated user complaints or court enforcement information, all are the aftermath of ShenNeng’s aggressive and rapid growth, leaving behind the consequences of overexpansion.

1

Slow and Difficult Claims, Constant User Complaints

On January 14, ShenNeng Property & Casualty Insurance was listed as a defendant by Wuhu Jinghu District People’s Court, with an enforcement target of about 406,500 yuan. Over forty days later, Haifeng County People’s Court also listed ShenNeng as a defendant, with an enforcement target of about 114,600 yuan.

Both cases lack public disclosure of enforcement basis documents, so the public cannot know exactly why ShenNeng was made a defendant. However, from user complaints on platforms like Xiaohongshu, we might glimpse the reasons behind ShenNeng’s enforcement cases.

On March 1, a Xiaohongshu user posted a note asking why ShenNeng’s auto insurance is so cheap. From the mobile page shared, ShenNeng’s auto insurance costs only 2,730.78 yuan, compared to Ping An’s 3,926.09 yuan and Pacific’s 4,279.83 yuan.

On March 5, a user from Shanghai commented under that post, saying, “Not recommended to buy ShenNeng, really slow when filing claims, always saying they’re going through procedures. I finally resolved it through complaints.”

Many similar reports exist: “They didn’t report my car damage, gave a low quote,” “The claims adjuster directly wrote off 300 yuan for repairs without an accident,” “After an accident, this insurance company sued us, the policyholders.”

On the Heimao Complaint platform, user complaints are even more detailed.

One delivery rider from a platform complained that he had a traffic accident while delivering food, resulting in multiple injuries. The platform has a special policy for compensation, but ShenNeng did not pay according to regulations.

All these complaints point to the same issue: behind the low premiums is a long, drawn-out claims dispute process.

The underlying reason may be glimpsed from ShenNeng’s business structure.

According to case filings recorded on AiQiCha, since 2025, ShenNeng has had 34 case filings, all as a defendant, with plaintiffs mainly from food delivery platforms, freight transportation, construction labor, and other fields—these are also the main drivers of its premium growth.

2

“Countertrend” Expansion: The Business Logic of Couriers and Drivers

ShenNeng’s rapid rise is no coincidence. Its strategic choices precisely target market gaps, such as insurance for food delivery riders.

Before ShenNeng entered the market, several traditional insurers had already engaged in the commercial insurance space for food delivery workers, including Ping An Property & Casualty, which focused early on rider protection, and China Life and Dadi Insurance, which participated in pilot programs for “new employment form workers’ occupational injury protection.”

By the end of 2024, the pilot coverage for occupational injury protection in new employment forms had expanded to 7 provinces and cities, with over 10 million insured (including food delivery riders, ride-hailing drivers, couriers, etc.). However, coverage in non-pilot areas remains low, with significant regional disparities, and there is still considerable room for more comprehensive commercial insurance coverage.

In 2025, as major e-commerce platforms like JD.com and Meituan escalated their “food delivery wars,” they began large-scale promotion of rider social insurance, further increasing demand for supplementary commercial insurance. ShenNeng seized this opportunity to enter. Meanwhile, the insurance needs of drivers in logistics and freight companies across various regions remain stable and long-term.

What allowed ShenNeng to quickly carve out a significant market share from traditional giants? Mainly its “low-price” strategy.

ShenNeng’s premium signing reliance on agents is high; in 2025, 74.1% of its premiums came from agency channels. On platforms like Alipay and Tencent WeSure, ShenNeng’s auto insurance quotes are typically 15%-25% lower than mainstream companies.

This “low-price” market capture strategy, although contrary to the industry trend of “reporting and operating as one” that emphasizes fee compression and cost refinement, has effectively opened up opportunities for ShenNeng.

3

The Other Side of the “Gamble”: ShenNeng’s Profit Formula

After rapidly accumulating premiums, how did ShenNeng turn losses into a net profit of 435 million yuan so quickly?

The core of an insurance company’s profitability lies in the sum of premium income and investment returns exceeding operational costs and claims payouts. For a new company, lowering the claims ratio is the most direct way to achieve short-term profitability.

ShenNeng’s secret to profit may lie precisely in its claims management.

The solvency report for Q4 2025 shows ShenNeng’s combined claims ratio was 67.84%, down 3.03 percentage points from the previous year.

How does this compare? During the same period, China Life Property & Casualty’s combined claims ratio was 74.15%, Zhonghua United Insurance 76.69%. While the latest data for Pacific and PICC Property & Casualty have not been disclosed for 2025, their recent combined claims ratios are also above 70%.

Meanwhile, ShenNeng’s combined expense ratio is as high as 32%, far above the 20%-25% of large insurers. This suggests that “costs are mostly paid as commissions to brokers or sales staff,” and the company relies on high channel incentives to grow premiums, squeezing profit margins through strict claims control.

As a result, consumers face more rigorous claims review, longer processes, and higher chances of claim denial.

The fact that ShenNeng was listed as a defendant twice in quick succession may be a consequence of its aggressive growth strategy. When compliance and reputation risks embedded in its business model begin to surface, improving back-end service systems and operational platforms to enhance service quality becomes a critical challenge for ShenNeng.

Source: Financial Warrior

Author: Warrior

Disclaimer: This article is for informational sharing only and does not constitute investment advice. Any investment decisions made based on this content are at your own risk.