Allianz Commercial flags battery overheating as key EV insurance concern

Allianz noted that 15% to 30% of EV fires are linked to charging.

Allianz Commercial has warned that the rapid growth of electric vehicle (EV) charging infrastructure is introducing new risks that require insurers’ attention. 

Whilst EVs have a lower overall fire incidence than combustion-engine vehicles, Allianz noted that 15% to 30% of EV fires are linked to charging, with incidents often leading to losses in the hundreds of thousands of dollars.

The insurer, highlighted in its “Global Risk Dialogue: Analysis and insight from the world of corporate risk and insurance“ report, that thermal runaway as a major concern, where overheating batteries can trigger fires, explosions, and toxic chemical release. 

Poor installation, inadequate grounding, and outdated building codes can heighten risks, whilst charging stations are also exposed to vandalism, cyber-attacks, and environmental damage. 

Maritime incidents involving EV cargo have also raised underwriting concerns, with fires at sea proving costly and difficult to investigate.

Allianz marine risk consultants warned that poor workmanship or failure to follow battery safety protocols could result in multi-million-dollar claims.

The company also pointed to the growing strain on ageing electricity grids as EV adoption rises, warning that simultaneous charging surges could cause overloads and potential failures. 

Allianz recommends certified equipment, qualified electricians, and updated safety standards to mitigate insurance risks as the EV ecosystem expands.