EV Insurance Market to Grow with a CAGR of 15.38% Globally through 2028
Increasing commercialization of the EV industry and the development of
new EV insurance products and services are factors driving the global EV
Insurance market in the forecast period 2024-2028.
According to TechSci Research report, “Global EV
Insurance Market - Industry Size, Share, Trends, Competition Forecast
& Opportunities, 2028”, the Global EV Insurance Market stood at USD
53.34 billion in 2022 and is anticipated to grow with a CAGR of 15.38% in the
forecast period, 2024-2028. Global EV insurance is an evolving sector within
the insurance industry, shaped by the rapid growth of electric vehicles (EVs)
worldwide. Insurers are adapting to the unique risks and needs of EV owners,
offering specialized coverage for components like batteries and charging
equipment. Innovative policies, including usage-based insurance and incentives
for eco-friendly driving, promote sustainability and responsible behavior among
policyholders. Insurers are forming partnerships with automakers and charging
network operators to enhance services. Challenges include staying updated on
evolving EV technology and assessing battery-related risks. With the continued
expansion of the EV market, global EV insurance plays a vital role in
supporting the transition to sustainable transportation. One of the defining trends in global EV insurance is
the shift towards personalized policies, often facilitated by usage-based
insurance (UBI) programs. These programs leverage telematics and IoT technology
to monitor individual driving behavior, allowing insurers to tailor coverage
and premiums to each driver's specific habits. For EV owners, this means
policies based on actual usage, rewarding responsible driving behaviors such as
efficient acceleration and braking. UBI not only aligns with sustainability
goals but also offers financial incentives, potentially reducing premiums for
eco-conscious EV drivers. Insurers are increasingly forming partnerships and
collaborations with various stakeholders in the EV ecosystem. This includes
automakers, charging network operators, and even government agencies. By
teaming up with automakers, insurers can integrate insurance offerings
seamlessly into the EV purchasing process. This provides buyers with a one-stop
solution for both their vehicle and insurance needs. Collaborations with
charging network operators help address risks associated with charging
infrastructure, such as accidents or equipment damage. Additionally, insurers
can work with governments to bundle insurance with incentives, promoting EV
adoption and responsible driving practices.
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Electric vehicles come with their own set of unique
risks, primarily centered around the EV battery and advanced technology.
Insurers are developing specialized coverage to address these concerns. Battery
damage coverage is crucial, as replacing or repairing EV batteries can be a
significant expense. Policies are being designed to cover battery-related
issues resulting from accidents, overheating, or other technical problems.
Additionally, insurers consider the higher repair costs associated with EV technology,
covering components like electric motors, control systems, and specialized EV
charging equipment. The global EV Insurance market is segmented into vehicle
type, application, provider, regional distribution, and company. Based on application,
the market is segmented into personal, commercial. The commercial segment is
the fastest-growing sector in the global EV insurance market. With businesses
increasingly adopting electric vehicles for their fleets, insurers are
tailoring coverage to meet commercial needs. Policies encompassing multiple EVs,
commercial charging infrastructure, and specialized coverage for
business-related activities are in high demand. As governments and corporations
worldwide emphasize sustainability, commercial EV insurance supports this
transition by providing comprehensive protection, ensuring business continuity,
and contributing to environmental goals. This rapid growth in commercial EV
insurance reflects the industry's commitment to facilitating the green
evolution of corporate transportation.
Major companies operating in Global EV Insurance Market
are:
- Esure Group plc
- Lemonade, Inc.
- Allstate Insurance Company
- Acko General Insurance Limited
- Progressive Casualty Insurance Company
- Allianz SE
- Bajaj Allianz General Insurance Company
- HDFC ERGO
- AXA
- Beinsure Digital Media
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“Global electric vehicle (EV) insurance is a rapidly
evolving market segment driven by the surging adoption of EVs worldwide. Key
drivers include the need to address unique EV risks such as battery damage,
advanced technology, and charging infrastructure incidents. Trends encompass
personalized policies via usage-based insurance, partnerships with automakers
and charging networks, coverage for battery degradation, and incentives for
eco-friendly driving. Challenges include adapting to evolving EV technology,
insufficient actuarial data, complex battery-related risks, and concerns
related to charging infrastructure and range anxiety. Asia Pacific dominates
this market due to high EV adoption and concentrated EV production,” said Mr.
Karan Chechi, Research Director with TechSci Research, a research-based
management consulting firm.
“EV
Insurance Market – Global Industry Size, Share, Trends, Opportunity, and
Forecast, Segmented By Vehicle Type (New Vehicle, Used Vehicle), By Application (Personal, Commercial), By
Provider (Insurance Companies, Banks, Insurance Agents/ Brokers, Others), By
Region, Competition”, has evaluated the future growth potential of global
EV Insurance market and provides statistics & information on market size,
structure and future market growth. The report intends to provide cutting-edge
market intelligence and help decision makers take sound investment decisions.
Besides, the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in the global EV Insurance market.
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