Electric Vehicles (EV) in Insurance - Thematic Research
Summary
The automotive industry is undergoing an unprecedented evolution, and the rapid, global spread of electric vehicles (EVs) is the most immediately pressing matter in the industry. The electrification of transport is seen as a key hurdle to overcome in the global systemic transition towards net-zero emissions targets. The insurance sector must stay up to date with the changing motor vehicle environment. Because there is a lack of comprehensive historical data and expertise, evaluating and pricing the risk profile of EVs poses an obvious challenge. As EVs gain popularity across the globe, insurers are racing against time to improve their offerings.
GlobalData forecasts that the global EV insurance industry will grow from $51.6 billion in 2021 to over $420 billion by 2034 as EVs become increasingly pertinent to consumers, manufacturers, and governments alike. However, challenges to claims management and control (including battery costs, supply chain issues, underdeveloped repair networks, and insufficient charging infrastructures) remain major sticking points to insurers. In addition, the data-driven future of connected cars will continue to challenge the motor insurance market status quo going forward.
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.
- 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.
- Executive Summary
- Players
- Technology Briefing
- Lithium-ion is the leading battery technology for BEVs
- Alternatives to lithium-ion
- Solid-state batteries are the next most viable option
- Power management systems are also key to battery performance
- Fuel cells can also power electric vehicles
- Is Tesla’s advantage insurmountable?
- Mega-castings
- Structural battery pack
- 4680 cells
- Autonomous technology
- Removing 12V systems
- What other automakers are doing to compete with Tesla
- BMW
- Daimler
- Ford
- Geely
- General Motors
- Hyundai
- Renault-Nissan
- Stellantis
- Volkswagen
- Trends
- Technology trends
- Macroeconomic trends
- Regulatory trends
- Industry Analysis
- Market size and growth forecasts
- The global EV insurance market is forecast to grow exponentially
- Competitive analysis
- Tesla is regarded as a pioneer, but it lags behind legacy automakers
- Momentum towards EVs is now established and production will increase rapidly
- Regional EV insurance markets and competitors
- Europe EV insurance markets
- Europe competitive analysis
- North America EV insurance market
- North America competitive analysis
- Asia EV Insurance market
- Asia competitive analysis
- Timeline
- Mergers and acquisitions
- Value Chain
- Product development
- Marketing and distribution
- Underwriting and risk profiling
- Claims management
- Customer service
- Companies
- Sector Scorecards
- Non-life insurance sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- Table 1: Technology trends
- Table 2: Macroeconomic trends
- Table 3: Regulatory trends
- Table 4: Key M&A transactions associated with the electric vehicles in insurance theme since January 2022
- Table 5: Companies
- Table 6: Glossary
- Table 7: GlobalData reports
- List of Figures
- Figure 1: Who are the leading players in the electric vehicles in insurance theme and where do they sit in the value chain?
- Figure 2: Automotive industry survey results on solid-state battery timeline
- Figure 3: Automotive industry survey results on solid-state battery timeline
- Figure 4: Tesla production by country
- Figure 5: The global EV insurance market is forecasted to reach over $400 billion by 2034
- Figure 6: Toyota was the leading global auto manufacturer (all fuel types) in 2022
- Figure 7: EV powertrains as a proportion of all new powertrains 2016–2030
- Figure 8: Toyota was the leading global auto manufacturer (all fuel types) in 2022
- Figure 9: In 2034, the EU market for EV insurance will account for 59.4% of the total EU motor insurance market
- Figure 10: BEVs and HEVs are slowly growing in popularity in the UK, although premiums remain higher
- Figure 11: The cost-of-living crisis has altered the speed at which consumers are planning to transition to EVs
- Figure 12: Allianz is the leading motor insurer in Europe
- Figure 13: The North American EV insurance market will grow by a CAGR of 19.9% from 2021 to 2034
- Figure 14: The Progressive is the largest insurer in North America
- Figure 15: Asia’s EV market is forecast to clear $167 billion in 2033
- Figure 16: MS&AD Insurance is the largest motor insurer in Asia (excluding China)
- Figure 17: The electric vehicles in insurance story
- Figure 18: Electric vehicles M&A activity has grown rapidly over the last few years
- Figure 19: The insurance industry value chain
- Figure 20: Uptake of UBI policies in the UK private and commercial motor insurance
- Figure 21: Who does what in the non-life insurance space?
- Figure 22: Thematic screen
- Figure 23: Valuation screen
- Figure 24: Risk screen
- Figure 25: Our five-step approach for generating a sector scorecard
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