Electric Vehicles (or EVs) are an undeniable reality: they have become a frequent sight in cities across the world, feature heavily in advertising and popular culture, and have gained a foothold among consumers in several markets. More than half of car owners interviewed for a recent study say they would like to purchase an EV as their next car.

By 2030, EVs are expected to make up to 44% of car sales worldwide, with some estimates projecting sales as high as 60% for the same time period. In some regions, measures such as a ban on sales of new Internal Combustion Engine (or ICE) vehicles are being rolled-out or discussed, with implementation timelines set for the next decade. In others, programs to encourage EVs are already in place. However, EV adoption is not uniform across the world, and some clear pioneer markets have emerged, as we will discover.
 

In this paper we explore the implications for (re)insurers as EVs become the new standard for mobility. What are the main considerations when it comes to insuring EVs compared to ICE vehicles? What do insurers need to consider when adapting their offer to consumer demand? What are the knowledge gaps that need to be closed? What opportunities exist for motor insurers in this landscape and how can they better prepare to seize them?