Douglas Chia, our CEO, recently shared his insights with the Asia Insurance Review on the rapidly expanding Electric Vehicle (EV) insurance industry in Singapore. Despite the growing consumer demand for EVs, the availability of EV insurance in Singapore remains limited. He addressed the reasons behind this scarcity and the relatively higher costs associated with EV insurance compared to traditional gasoline-powered vehicles.

While the fundamental principles of insuring EVs are similar to those for combustion engine vehicles, there are significant differences that underwriters need to consider. Notably, one of the key factors contributing to the higher costs of EV insurance is the expensive nature of repairs.

Most EVs have non-modular batteries, meaning that even if only a single part is damaged, the entire battery often needs replacement, effectively requiring the replacement of the entire "engine" of the car.

Another significant issue is the protective stance of EV manufacturers regarding their intellectual property. It is not easy to get a hold of diagnostic machines for Tesla vehicles, for example. Options for repair are limited and majority of the repairs are done by authorised dealers. Incurring at significantly higher costs that are ultimately passed on to the consumer.

Read the in-depth insights from Douglas on this topic in the article here.