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

Publisher Frost & Sullivan
Published Apr 17, 2024
SKU # MC18721106

Description

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.

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.

Table of Contents

Transformation in Insurance Write-offs in NA & Europe
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
Ecosystem
Scope of Analysis
EV Insurance Claim Categories—Repairable vs. Write-off
Growth Generator
Growth Drivers
Growth Restraints
Growth Environment
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
EV Repair & Insurance— Industry Overview and Challenges
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
Regional Analysis—North America and Europe
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
EV Insurance Write-offs in North America & 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 Universe
Growth Opportunity 1—Low-cost Battery Repairs
Growth Opportunity 2—Repair Streamlining and Simplification
Growth Opportunity 3—Auto Salvaging Maximization
Best Practices Recognition
Best Practice Recognition
Frost Radar
Frost Radar
Next Steps
Benefits and Impacts of Growth Opportunities
Next Steps
Take the Next Step
List of Exhibits
Legal Disclaimer

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