Electric Vehicles (EV) in Insurance – Thematic Research

EV in Insurance Thematic Report Overview

The growth in the electric vehicle (EV) insurance market is influenced by several variables, such as falling EV prices, longer battery ranges, and more global charging infrastructure, which all drive greater demand for EVs. The demand for insurance cover specially designed for EVs will increase as these vehicles become more widely available and make up more of the motor parc. The growth of EVs poses both an opportunity and a challenge to the auto industry.

The Electric Vehicles (EV) in Insurance thematic intelligence report assesses how EV, combined with other emerging technologies, can be used across the insurance value chain. It provides an overview of the current landscape, including technology, macroeconomic, and regulatory trends, as well as key players, while also highlighting opportunities for the use of EVs in the future. The report provides an industry-specific analysis based on GlobalData databases and surveys.

EV in Insurance – Key Trends

The main trends shaping the EV industry are classified into three categories: technology trends, macroeconomic trends, and regulatory trends.

• Technology trends: Some of the key technology trends impacting the theme are competing battery chemistries, battery price parity with combustion engines, hybrid vehicles in underdeveloped nations, advancement in battery technology, and fire risks posed by EVs.
• Macroeconomic trends: The key macroeconomic trends explained in the report are chip shortage, China impact, strategic partnerships, raw material supply chains, Russia/Ukraine conflict, investment into charging infrastructure, and inflation and cost-of-living crisis.
• Regulatory trends: ICE vehicle bans, Paris Agreement, and financial incentives to purchase EVs are a part of the regulatory trends impacting insurance.

EV in Insurance – Industry Analysis

The EV insurance industry was worth $51.6 billion in 2021 and is expected to achieve a CAGR of more than 17% between 2021 and 2034. This growth is influenced by several variables, such as falling EV prices, longer battery ranges, and more global charging infrastructure, which all drive greater demand for EVs. The demand for insurance cover specially designed for EVs will increase as these vehicles become more widely available and make up more of the motor parc.

The EV in Insurance industry analysis also covers:

• Competitive analysis
• Timeline
• Mergers and acquisitions

Global Motor, EV, and BEV Insurance Markets, 2017-2034 ($ Billion)

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EV in Insurance - Value Chain Analysis

The insurance industry value chain consists of product development, marketing and distribution, underwriting and risk profiling, claims management, and customer service.

Product development: The idea for a new insurance product is developed during the product creation stage of the insurance value chain. The industry’s top insurers are embracing a growing trend of creating independent insurance policies, especially for electric vehicles. The distinctive difficulties posed by EVs’ technological features and charging infrastructure are fueling this movement. Furthermore, with the electrification of vehicles, the traditional motor insurance product is anticipated to continue evolving. EVs will turn into connected vehicles as data-related vehicle capabilities increase. This will make it possible for EVs to be better integrated with the Internet of Things (IoT), which will result in connected cars playing a bigger role in the global motor industry.

Insurance Industry Value Chain Analysis

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Leading Companies

Some of the leading companies making their mark within the electric vehicles in insurance theme are:

• Allianz
• Allstate
• Aviva

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Insurance Sector Scorecard

At GlobalData, we use a scorecard approach to predict tomorrow’s leading companies within each sector. Our non-life insurance sector scorecard has three screens: a thematic screen, a valuation screen, and a risk screen.

• The thematic screen ranks companies based on overall leadership in the 10 themes that matter most to their industry, generating a leading indicator of future performance.
• The valuation screen ranks our universe of companies within a sector based on selected valuation metrics.

• The risk screen ranks companies within a particular sector based on overall investment risk.

Non-life Insurance Sector Scorecard – Thematic Screen

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Segments Covered in the Report

EV in Insurance Value Chain Outlook (Value, $ billion, 2017-2034)

• Product Development
• Marketing and Distribution
• Underwriting and Risk Profiling
• Claims Management
• Customer Service

Scope

• The 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.

Key Highlights

• The 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 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 caused by or to the charging apparatus.

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.