Hong Kong's EV insurance market to grow 30% by 2026

Rising EV popularity will drive demand growth for insurance.

EV insurance demand in Hong Kong will grow by 30% by 2026.

Zurich Hong Kong said the rising popularity of EVs and their insurance products will drive the anticipated demand growth.

In 2023, Zurich Hong Kong saw over 20% growth in gross written premium and number of policies for motor insurance driven by the rising EV adoption in the city-state.

The market share of EVs, measured by the number of policies, also grew 193% in December 2023 compared to the previous year.

Demand for EV insurance products increased following the strong typhoon that hit Hong Kong in September 2023.

The storm caused significant damage to EVs, which have higher repair costs, resulting in insurance claims for EVs being 1.6 times higher than those for non-EVs.

In addition, a Zurich survey revealed that 62% of respondents would consider EVs for their next vehicle purchase, and 86% of drivers would prefer EV-specific insurance policies despite these costing 20% more.

On average, respondents said they are willing to pay 37% more for EV coverage.