Insurers need to reevaluate policies for EVs: Korean Re

Insured electronic vehicles accounted for 0.9% of total insured motor insurance policies in 2022.

Insurers should prepare for the government's upcoming battery subscription service for electronic vehicles (EVs), warned Korean Re. 

This scheme allows separate registrations for the EV and its battery pack, meaning the owners of the car and battery may differ. 

In 2022, Korea saw a total of 157,000 insured EVs. 

This accounted for 0.9% of the total insured vehicles under personal motor insurance policies, according to results from the Korea Insurance Development Insitute.

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Car manufacturers or financial service firms will run battery rental services for drivers. To accommodate this change, the government intends to revise the current car registration law.

In light of this development, insurers may need to adopt a fresh approach to pricing and offering motor insurance coverage. 

The ownership of EVs and their batteries must be clearly specified, and the scope of coverage defined more explicitly in insurance policies.