Has your business prepared for the increased demand of electric vehicle insurance?
Changes to the Electric Vehicle Market
In recent years, we have seen a colossal improvement in the electric vehicle market. This includes advancements in technology, range and varieties of these vehicles. All these improvements are making the vehicles more accessible for the everyday consumer.
As well as these advancements, there is also a strong growing demand for electric vehicles. We have recently seen proof of this during the pandemic. Manufacturing of Internal Combustion Engine vehicles decreased, and the electric vehicle remained strong and increased in some cases. The market has seen also some strong changes since parliament passed legislation in June 2019. The aim of this legislation is to reduce the UK’s net emissions of greenhouse gases. Many motorists have made the switch to Battery Electric Vehicles (BEV) or Plug-In Hybrid Vehicles (PHEV). This is due to the financial and environmental advantages such as no cost of fuel, and lower emissions.
Electric Vehicle Insurance
As a result of the movement in the market, the insurance industry is adapting. There are increasingly more options for specialist electric vehicle insurance products for those choosing to driver greener vehicles.
As an insurance provider, it is important to ensure that your current product offering caters for the changes in the market, many insurers and insurance providers have implemented changes to products to cater for these demands. The Association of British Insurers (ABI) have said it would like insurance firms to make more eco-friendly choices when making claims. They now have recommended schemes that would enable customers to switch to an EV following a total loss.
That’s why, here at Acasta Europe, we have begun preparing for the rise in electric vehicle insurance demand. We will soon be piloting a GAP Insurance scheme tailored to electric vehicles only. This will be to gain data and information to assess the claims and underwriting statistics. Doing this will allow us to tailor our bespoke products to specific segments of the market, ensuring that the cover offered meets your customer’s needs.
If you are interested in electric vehicle insurance specific schemes, or are willing to share data and information on this growing market, please get in touch with a member of the team.
Written by Remi Cosgrove, Underwriter.
Contact our underwriting team
If you are looking to start a new scheme, or move an existing one, our underwriting team will be happy to help. We can cover a wide range of products, from Warranty to Gap Insurance. Click below to set up a meeting so we can further assess your needs and advise on how we can help you, your business and your clients.