Electric Vehicles (EV) in Insurance – Thematic Research

Pages: 55 Published: May 03, 2022 Report Code: GDIN-TR-S044

The global EV insurance market was worth $49 billion in 2020. The market is expected to grow at a CAGR of more than 19% during the forecast period. Falling EV prices, greater battery ranges, and sufficient charging infrastructure will contribute to the worldwide proliferation of EVs, growing the market for EV insurance in parallel. National governments have been racing to incentivize consumer uptake of EVs while continually investing in the widespread rollout of the infrastructure needed for their success.

What are the market dynamics in the EV insurance market?

At present, the average price of EVs is greater than the average car price (as has been discussed) and over time, this price difference will diminish. EV prices have historically fallen quite rapidly and are anticipated to continue to decrease but at a slower rate going forward. The three primary regions for EV insurance will be Europe, North America, and Asia. While Tesla has a clear lead in EV production and sales, it lags a long way behind legacy automakers in its full production capacity.

What are the key trends that will impact the EV insurance market?

The key trends that will shape the EV in insurance market in the coming months are technology trends, macroeconomic trends, and regulatory trends.

What are the different value chains in the EV insurance market?

The value chains in the EV in insurance market are product development, marketing and distribution, underwriting and risk profiling, claims management, and customer service.

Product Development

There is an increasing trend among leading insurers within the EV space to create standalone, EV-specific insurance policies. The added complications of the charging equipment, plus the different technological makeup of the vehicles, justifies this development.

Marketing and Distribution

Motor insurance is compulsory in almost all countries worldwide, and certainly in all nations at the forefront of EV production and uptake. Brokers are expected to continue their involvement in the provision of commercial motor insurance products, as a leading source of expertise and skill in navigating the more complex world of commercial markets. In some countries (notably the UK), aggregators continue to play an important role in encouraging competitive behavior between insurers in the personal line.

Underwriting and Risk Profiling

The underwriting and risk profiling segment of the insurance value chain is where EVs begin to show their differences from traditional vehicles. EVs retain an element of similarity to their ICE predecessors but have very different propulsion mechanisms. The typically slow-moving insurance industry must rapidly get to grips with new technologies and systems in vehicles that are increasing in popularity at almost unprecedented speeds. Moreover, as a relatively nascent market and technology, there is a significant level of heterogeneity between manufacturers, as each competing firm looks to navigate its own path to success.

Claims Management

As the EV market develops over the next decade, and EVs take up a greater proportion of the global motor parc, traditional mechanics will likely have to reskill as electrical engineers in order to maintain business levels as the underlying technology changes in a significant proportion of vehicles. Furthermore, third-party suppliers and manufacturers of auto parts will pivot towards EV parts, or the market itself will pivot towards a different group of suppliers, such as technology companies, rather than mechanical manufacturers for supplies.

Customer Service

The importance of customer service to the insurance value chain remains constant no matter the product. The process remains somewhat unchanged in the transition from ICE vehicles to EVs. Disputes over claims and liability will likely persist and claims values could rise due to the nature of EVs and the current costs of repairs.

Which are the leading companies that are associated with the EV insurance theme?

Some of the leading companies that are associated with the EV insurance theme are Allianz, Allstate, AVIVA, AXA, Direct Line, Ford, General Motors, Hyundai, Mercedes-Benz, Ping An Insurance, Stellantis, and Tesla.

Market report scope

Market Size (Year – 2020) $49 billion
Growth rate CAGR of >19%
Forecast period 2020 to 2033
Key trends Technology Trends, Macroeconomic Trends, and Regulatory Trends
Value chains Product Development, Marketing and Distribution, Underwriting and Risk Profiling, Claims Management, and Customer Service
Leading companies Allianz, Allstate, AVIVA, AXA, Direct Line, Ford, General Motors, Hyundai, Mercedes-Benz, Ping An Insurance, Stellantis, and Tesla

Reasons to Buy

  • Visualize 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.

Key Players

Ping An, Aviva, AXA, Allianz, Zurich, Tesla, Unipol, Generali, Zego, State Farm, Progressive, Berkshire Hathaway, PICC, Mitsui Sumitomo, Aioi Nissay Dowa, Tokio Marine, Allstate, Admiral, Direct Line, Ford, GM, Mercedes-Benz, Stellantis, Volkswagen, Geely, SAIC, Nio, Travelers, Toyota

Table of Contents

Executive Summary


Thematic Briefing


Industry Analysis

Value Chain


Sector Scorecards


Further Reading

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