As fuel prices rise and the world becomes more and more aware of the effects of climate change, the demand for electric vehicles increases. Insurance companies can be the key to helping their customers navigate obstacles and opportunities for electric vehicles.
As I shared in my post 5 forecasts for the insurance industry 2022we expect the global electric vehicle market to reach $ 725 billion by 2026. This is a growing segment of innovative insurance companies and not just a game of compensation for declines in existing car premiums.
The change for the insurance industry is to reinvent traditional compensation-based products as innovative offerings that help protect the customer’s interests – not just the customer’s assets.
To get past the barriers of electric cars
For many customers, reliable access to a charging station for the home is a deal-breaker. Homeowners and tenants in apartment buildings, many encounter obstacles to having a space equipped with a charging unit, and the supervisory authorities begin to intervene. Those who rely on street parking near their homes in urban areas get creative with charging solutions and likely introduce new risks for the surrounding community in the process.
The opportunity to enable drivers of electric vehicles with charging solutions will catch someone. There are many potential business models and many industries that could create relevant offers at an affordable price. Insurers with their amount of customer data have a clear advantage.
We are already seeing innovations in this area such as the Drive Electric program by Bâloise. They were recognized by one Efma-Accenture Innovation in Insurance Prize. Through their strategic partnerships, they help customers both set up charging stations for the home and gain access to charging stations across Europe.
Even for customers who have easy access to charging, disruptions in the supply chain and inflation can still delay the availability and affordability of electric vehicles. For these customers, insurance companies can be the strategic partner that provides access to the full range of value-added solutions for mobility. These may include vehicle maintenance plans to extend the life of the customer’s current vehicle, options for errands and delivery services or quick access to recommendations for public transport.
Making data the driver
Many newer vehicles, especially electric models, are equipped with sensors and IoT functions that take them beyond what we think of as equipment and into the realm of technical devices. They are capable of advanced data analysis and can help the insurer and customer manage risks in real time.
Because insurance companies are considering taking out new vehicles, they will want to consider vehicle platforms. Whether it is a car manufacturer or a large technology company that owns the vehicle platform, insurance companies are the natural first choice of partners to include. A smooth car buying and insurance experience can be the beginning of a long and profitable customer journey.
Insurers with a cloud-enabled technology infrastructure that can receive upstream and downstream data flows with ecosystem partners will benefit. They will pave the way for greater warranty options and more efficient claims decisions along the way.
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Disclaimer: This content is provided for general information purposes only and is not intended to be used in consultation with our professional advisors.