The UK’s automotive risk intelligence company, Thatcham Research, has delivered its Impact of Battery Electric Vehicle Adoption on the Repair and Insurance Sectors report, highlighting the risk-affecting factors BEVs present to the insurance workflow.
Funded by Innovate UK, the report explains how insurers build their financial models around BEVs, examines concerns regarding the repair network, and analyses the total economic value around the widespread adoption of BEVs in the UK.
The major takeaway from the report is that no part of the Motor Insurance Claims process is unaffected by BEVs. The workflow impacts are profound and will, over time, force a wholescale industry adaption that much of the Motor Insurance industry is yet to acclimatise to. The implications still need to be quantified on repair capacity, training and skills, cost, and the lifetime sustainability of BEVs. However, the Motor Insurance industry already sees BEVs performing differently from ICE vehicles in the market.
BEV claims are already a quarter more expensive than their ICE equivalents and take around 14% longer to repair. Thatcham says it is impossible to quantify whether total loss rates are higher for the current generation of vehicles as there are too many confounding factors. Though, the most significant challenges identified by the report concern the insurance claims flow originating from high voltage (HV) battery damage.
Read the full report here.
(Picture – Yay Images)