(Yicai Global) July 13 -- BYD plans to quadruple the registered capital of the property and casualty insurance company that the Chinese electric vehicle titan acquired in May, indicating that it is preparing to enter the auto insurance sector, industry insiders told Yicai Global.

BYD will inject another CNY3 billion (USD418.2 million) to bring the registered capital of BYD Property and Casualty Insurance, formerly Yi’an P&C Insurance, to CNY4 billion, the Insurance Association of China said on its website yesterday. The matter is still pending approval by financial regulators.

BYD is not satisfied with the insurance unit’s existing online business and wants to expand the scope to auto insurance, industry insiders said. BYD is likely to start applying for a vehicle insurance business license once it has invested the additional funds.

Auto insurance requires many physical services such as surveys, rescue work and loss determination, an executive with a large insurance company told Yicai Global. A network of such brick-and-mortar outlets cannot be built in a short period, so BYD P&C Insurance is likely to partner with a large insurer to rapidly expand its auto insurance network.

BYD P&C Insurance is hiring for two positions at the moment, Yicai Global found out from a job-hunting platform. They are a general manager of claims and customer service and a general manager of information technology, both of which are focused on car insurance.

BYD was given the greenlight to acquire a 100 percent stake in bankrupt Yi’an P&C Insurance on May 9, making it the first automaker to own an insurance firm in China. Although no price was given, rumors were swirling that the Shenzhen-based company might pay CNY7 million (USD976 ,000) for shares in the insolvent firm and CNY547 million to settle its debts and boost its assets as well as inject another CNY3 billion of capital.

Editor: Kim Taylor