Insurance Implications Of Electric Cars

Around the globe, the take-up of electric cars is expected to accelerate rapidly in future, driven by consumer demand and government policies aimed at tackling climate change.

The future of mobility is clearly electric, but the transition will lead to a fundamental change in risk for manufacturers, suppliers and insurers alike and will have a significant impact on automotive product liability insurance.

A new publication by Allianz Global Corporate & Specialty (AGCS) The Electric Vehicles R-EV-olution: Future Risk and Insurance Implications highlights that the use of electric cars is expected to soar in future as their cost gradually declines, the choice of available new models likely doubles within five years, their driving range increases and consumers, as well as governments, demand greener low-emission vehicles.

The International Energy Agency has predicted there could be more than 100 million electric cars on the roads in 2030 – up from around seven million today – with annual sales in the region of 20 million, driven by growth in China – already the world’s largest market – the European Union (second largest), Japan, Canada, the US and India, in particular.