Electric Vehicles (EV) in Insurance - Thematic Research

Electric Vehicles (EV) in Insurance - Thematic Research
Summary

The automotive industry is undergoing an unprecedented evolution, and the rapid, global spread of electric vehicles (EVs) is the most immediately pressing matter in the industry. The electrification of transport is seen as a key hurdle to overcome in the global systemic transition towards net-zero emissions targets. The insurance sector must stay up to date with the changing motor vehicle environment. Because there is a lack of comprehensive historical data and expertise, evaluating and pricing the risk profile of EVs poses an obvious challenge. As EVs gain popularity across the globe, insurers are racing against time to improve their offerings.

GlobalData forecasts that the global EV insurance industry will grow from $51.6 billion in 2021 to over $420 billion by 2034 as EVs become increasingly pertinent to consumers, manufacturers, and governments alike. However, challenges to claims management and control (including battery costs, supply chain issues, underdeveloped repair networks, and insufficient charging infrastructures) remain major sticking points to insurers. In addition, the data-driven future of connected cars will continue to challenge the motor insurance market status quo going forward.

ScopeThe cost of batteries remains the main driver behind EV insurance premiums, as such a high proportion of the total car cost is attributed to the battery pack.Through connected car capabilities and an in-depth knowledge of their own vehicles, original equipment manufacturers may be able to disrupt the motor insurance industry with their own in-house insurance.Leading insurance providers have a standalone, EV-specific product for customers, often taking into consideration any liabilities or damages cause by or to the charging apparatus.Reasons to BuyVisualize the growth potential of global electric vehicle insurance markets.Identify key challenges and opportunities arising within the space.Benchmark yourself against the progress of leading insurers within this developing sector.