Allianz warns of new risks as 100m electric cars predicted by 2030

The rise of the popularity of electric cars is clear but insurer Allianz Global Corporate & Specialty (AGCS) has warned that this tech advance “comes with a host of new risks and claims scenarios for manufacturers, suppliers and insurers”.

The firm highlights issues around battery performance, cyber attacks and fire risks as more electric vehicles grace roads around the globe.

In its report ‘The Electric Vehicles R-EV-olution: Future Risk And Insurance Implications’, the insurer said that government efforts to increase consumer demand for these cars, as part of climate change mitigation policies, could mean the number of electric cars reaches 100 million by 2030 (as estimated by the International Energy Agency). This is compared to just seven million on the roads at present.

For the automotive industry, and their insurers, this means more potential defect and performance issues, more complex and costly repairs, as well as new fire and cyber threats, Allianz explained. The issue of sustainable sourcing and disposal of critical components and raw materials will need to be addressed.

On top of this, Allianz said that the growing complexity of supply chains and new technology will impact product liability insurance in the commercial insurance segment.

Daphne Ricken, senior underwriter liability at AGCS, said: “From supply chain networks to production processes to the product itself – the automotive industry will have to respond to many emerging risks to make the transition to electric vehicles happen.

“The anticipated growth of electric cars brings the prospect of new defect or performance issues; more expensive repair costs; new fire and cyber threats; and even reputational issues around sustainable sourcing and disposal of critical components and raw materials for batteries.”