As the electric vehicle (EV) revolution accelerates, the insurance industry finds itself at a pivotal crossroads. The rapid adoption of EVs, fuelled by regulatory mandates and a growing consumer demand for sustainable transportation, is reshaping the landscape of auto insurance. Insurers face unique challenges, including high claim severity due to costly battery repairs and a lack of historical claims data, which complicate risk assessment and pricing strategies.

Despite these challenges, the integration of advanced technologies such as AI, telematics, and battery diagnostics offers a transformative opportunity for the industry. These innovations can enhance risk assessment, enable personalized pricing, and streamline claims handling, allowing insurers to understand better and manage the risks associated with EVs. By leveraging data-driven insights, insurers can develop more accurate underwriting models and create differentiated product offerings tailored to the needs of EV owners.

This research focuses on how insurers can both navigate the challenges of the EV insurance market and position themselves for sustainable growth and innovation in the era of electric mobility.