The growing number of electric cars poses completely new risks for insurance companies. Many accidents and faults can be very costly.
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Allianz Insurance sees many new challenges for electric cars: low battery capacity, complex and expensive repairs, change in fire behavior, cyber risks and sustainable sourcing and disposal of critical components and raw materials.
The number of electric cars is expected to increase from seven million today to 100 million in the next ten years. This would fundamentally change the risks for manufacturers, suppliers and insurers.
Accident damage is usually more expensive
Electric vehicles are still rarely involved in accidents. But damage is usually more expensive than with conventional cars: “If an electric car’s battery needs to be replaced, it can mean total damage in many cases. In addition, repairs can usually only be done within specialist workshops and are therefore more expensive “, explains Allianz- Technology expert Carsten Reinkemeyer.
In the event of faults, clarifying liability becomes more complicated – for example for batteries that do not meet performance and service life guarantees or that burn when overcharged or damaged and release large amounts of toxic gases . The rapid transition to electric mobility with new technologies and short development cycles could “lead to an increase in product defects and quality issues and trigger product recalls in the automotive industry,” the alliance said .
More networking and digitization also means more “cyber vulnerabilities that allow malicious attacks, system crashes, bugs and disruption”. The components of electric cars are more integrated. It would be more complicated to clarify how they work together and which manufacturer or supplier would be responsible for a defect or faulty control.