Electric Vehicles and the Future of Motor Insurance

GlobalData’s Electric Vehicles and the Future of Motor Insurance report focuses on the development and challenges of EV insurance for global insurers. By EV insurance, we mean a motor insurance policy that provides cover for an EV (either a battery electric vehicle, hybrid electric vehicle, or fuel-cell electric vehicle) as opposed to just an EV-specific policy.

This report discusses the challenges the insurance industry faces in providing insurance for EVs, a relatively new, unknown, and rapidly evolving technology, as it grows in popularity across the world. It then looks at the potential size of EV insurance markets in the three primary regions of EV uptake (Europe, North America, and Asia).

• Electric vehicles are growing in popularity at a rapid rate. GlobalData forecasts the global electric vehicle insurance market to grow ten-fold from $49 billion in 2020 to over $500 billion in 2033

• Challenges to insurers involve coming to terms with new supply chains, repair networks, and understanding risks involved with charging stations and networks both publicly and within the home

• Leading insurers in Europe, China, and North America have developed EV-specific insurance products or have created strategic partnerships with OEMs to enhance their product offering

• Tesla is the leading global EV manufacturer, producing over 500,000 EVs in 2020. However, it remains some way behind the full production capacity of leading OEMs. Both Toyota and Volkswagen produced over 8.5 million vehicles in 2020

• OEMs can fit themselves into four of the five stages of the insurance value chain as a result of their understanding of their own EV’s systems and functions as well as the increasingly powerful in-vehicle data collection capabilities