Growth Opportunities in EV Insurance Write-Offs in NA & Europe

Growth Opportunities in EV Insurance Write-Offs in NA & Europe

Battery Safety Concerns, Nonstandard Vehicle Designs and Complex Repair Procedures are Top Challenges. Strategic Partnering among OEMs, Insurers, and Repairers will be Crucial to Reducing Premature EV Write-offs.

RELEASE DATE
17-Apr-2024
REGION
Global
Deliverable Type
Market Research
Research Code: MH4F-01-00-00-00
SKU: AU_2024_663
AvailableYesPDF Download
$2,450.00
In stock
SKU
AU_2024_663

Growth Opportunities in EV Insurance Write-Offs in NA & Europe
Published on: 17-Apr-2024 | SKU: AU_2024_663

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The study provides an overview of insurance and repair processes when an electric vehicle (EV) is damaged in an accident.

Covered regions include North America (the United States and Canada) and Europe (including the United Kingdom). The key challenges that repairers and auto insurers face when repairing an electric vehicle and the factors that increase EV insurance premium costs are discussed. Regulatory measures and OEM initiatives in North America and Europe that will reduce EV repair costs in the future are also included. Rising consumer awareness, government regulations, and subsidy programs boost the adoption of EVs worldwide. This, in turn, will lead to an increase in EV road accidents and EV-specific insurance claims year over year. Batteries, inverters, and charging units are critical EV components. A minor collision or damage to these components will raise concerns around ignition and safety, leading to repairs/replacement. OEMs do not follow a standard procedure that will ensure the quality and safety of a repaired EV battery. Any negligence during the repair process could lead to short circuits, fire, or explosion, and make repair shops liable for damages. Authorized parts availability, costly battery and electrical parts, quarantine requirements for damaged battery storage, additional labor hours required for EV repairs, and the lack of standard repair procedures contribute to the higher claim severity cost of EV batteries and increase the possibility of write-offs. OEMS must train dealers, vehicle damage assessors, and technicians on vehicle architecture, wiring structure, and battery pack design to improve repair efficiency and safety. OEMs such as Nissan, GM, Ford, and Tesla have initiatives in place to simplify battery design and introduce EV battery repair kits. They are also making EV replacement parts available through their authorized repair shops. Governments in Europe and North America are creating regulatory frameworks to give third-party vehicle service providers access to vehicle data. Such initiatives will expedite replacement or repair services and reduce the possibility of premature EV write-offs in the future.

Author: Dorothy Amy

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on EV Insurance Write-offs in NA and Europe

Scope of Analysis

EV Insurance Claim Categories—Repairable vs. Write-off

Growth Drivers

Growth Restraints

EV Insurance Write-offs—Key Findings

Scenarios Leading to Insurance Write-offs in EVs

EV Damage Type Leading to Repairs or Write-offs

EV Battery Repair Issues

OEM Initiatives that Address Repair Costs and Write-offs

Regulations Impacting EV Repair and Insurance

Percentage of EV Write-offs in 2023

ICE vs. Electric Vehicle Sales

Post-incident EV Repair and Write-off Process

EV Repair Process Challenges

Insurer Metrics—Claim Severity & Claim Frequencies

Top Reasons for Increased Insurance Premiums

Tesla’s In-House Insurance Strategy

Process for Handing Written-off EVs in NA & Europe

Written-off EV Hotspots

Regulations Impacting EV Insurance & Repair, NA

Average Claim Severity & Claim Frequency, NA

Average EV Premium, NA

EV Insurance Trend Analysis, North America

Regulations Impacting EV Insurance and Repair, Europe

Average EV Premium, UK

Sustainable Best Practices for Damaged EVs in Europe

EV Insurance Trend Analysis, Europe

Methodology for Calculating EV Write-off Percentages

Factors that Result in Vehicle Write-offs

Repairable Vehicle Claims vs. Write-offs Percentage, 2023

Reasons for Write-offs in 2023

Key Takeaways and Future Recommendations

Growth Opportunity 1—Low-cost Battery Repairs

Growth Opportunity 1—Low-cost Battery Repairs (continued)

Growth Opportunity 2—Repair Streamlining and Simplification

Growth Opportunity 2—Repair Streamlining and Simplification (continued)

Growth Opportunity 3—Auto Salvaging Maximization

Growth Opportunity 3—Auto Salvaging Maximization (continued)

Best Practice Recognition

Frost Radar

Benefits and Impacts of Growth Opportunities

Next Steps

Take the Next Step

List of Exhibits

Legal Disclaimer

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Growth Dialog™

A tailored session with you where we identify the:
  • Strategic Imperatives
  • Growth Opportunities
  • Best Practices
  • Companies to Action

Impacting your company's future growth potential.

The study provides an overview of insurance and repair processes when an electric vehicle (EV) is damaged in an accident. Covered regions include North America (the United States and Canada) and Europe (including the United Kingdom). The key challenges that repairers and auto insurers face when repairing an electric vehicle and the factors that increase EV insurance premium costs are discussed. Regulatory measures and OEM initiatives in North America and Europe that will reduce EV repair costs in the future are also included. Rising consumer awareness, government regulations, and subsidy programs boost the adoption of EVs worldwide. This, in turn, will lead to an increase in EV road accidents and EV-specific insurance claims year over year. Batteries, inverters, and charging units are critical EV components. A minor collision or damage to these components will raise concerns around ignition and safety, leading to repairs/replacement. OEMs do not follow a standard procedure that will ensure the quality and safety of a repaired EV battery. Any negligence during the repair process could lead to short circuits, fire, or explosion, and make repair shops liable for damages. Authorized parts availability, costly battery and electrical parts, quarantine requirements for damaged battery storage, additional labor hours required for EV repairs, and the lack of standard repair procedures contribute to the higher claim severity cost of EV batteries and increase the possibility of write-offs. OEMS must train dealers, vehicle damage assessors, and technicians on vehicle architecture, wiring structure, and battery pack design to improve repair efficiency and safety. OEMs such as Nissan, GM, Ford, and Tesla have initiatives in place to simplify battery design and introduce EV battery repair kits. They are also making EV replacement parts available through their authorized repair shops. Governments in Europe and North America are creating regulatory frameworks to give third-party vehicle service providers access to vehicle data. Such initiatives will expedite replacement or repair services and reduce the possibility of premature EV write-offs in the future. Author: Dorothy Amy
More Information
Deliverable Type Market Research
Author Dorothy Amy
Industries Automotive
No Index No
Is Prebook No
Podcast No
WIP Number MH4F-01-00-00-00