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The rise of electric vehicles in the New Zealand insurance market

Tower recently won Canstar’s first Car Insurer of the Year Award. The award recognizes the provision of high-demand products such as electric vehicle covers. Chief Underwriting Officer Ron Mudaliar said the number of EV policies sold by Tower has increased by 40% in the last six months, and EV owners are becoming a significant part of the customer base. And more and more affordable points.

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“The rise of EVs has been in the spotlight since the beginning of this year, when sales began to be strong, and the portfolio has expanded accordingly,” said Mudaliar. “By 2020, EV sales increased by about 40% in New Zealand, which is in line with the portfolio growth from February to the latest figures.”

“I think this trend will continue, but one of the driving forces is that EV prices are starting to fall,” he explained. “Batteries are becoming more affordable, and governments in New Zealand and around the world are subsidizing clean cars and offering discounts.

“At the end of last month, Tesla was the second most sold in New Zealand due to lower prices, and more and more people are getting discounts on clean cars at that affordable price. I really like it going up. I think you will see it. “

When it comes to EV insurance, Mudaliar said that while it was a fairly expensive product to insure, the increased availability of parts has made covers and repairs much more affordable. is showing. He said collecting data on the repairability of different vehicle models will be an important focus of towers in this area over the next few years as it will help improve EV-specific products and benefits. ..

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“When some EVs were first launched, panel repairs were very difficult due to the availability of parts,” Mudaliar said. “It’s starting to change over time, and people are learning more about repair costs. One of the key issues is how to deal with damaged batteries, which is still in the process of understanding. For example, batteries. Some organizations lease the batteries individually and insure someone else.

“But we are tracking the costs of each vehicle to understand which vehicles are costing more, and we hope to offer more EV-specific benefits over time. “

Tower Insurance currently covers a wide range of electric vehicles, most of which is provided to Nissan, Kia, VW Golf and Tesla EVs. As ownership levels continue to rise, Tower aims to introduce these benefits further and give New Zealanders more incentives to buy eco-friendly cars through perks and discounts, Mudaliar said. I did.

“What we’re trying to do is allow the transition to provide benefits. For example, under Roadside Assistance, we’ve added the ability to move the EV to the nearest charging point,” Mudaliar said. Mr. says. “We will gradually add EV-specific benefits to our products to enable that change, and we will continue to consider other additional features.”

“When we deal with total losses, we are also thinking about how we can impact our customers to move from old cars to EVs. This is for us in the future. I think it will be an important part. When it comes to climate change, you need to start in your own backyard. Promoting the use of clean vehicles and making them more affordable are important ways to reduce CO2 emissions. ..

“Then, as the portfolio changes, you’ll see what you can do from an EV-focused product perspective. It will take some time, but it’s definitely a transition, so you have to start thinking about how you can support it. I can’t. “

The rise of electric vehicles in the New Zealand insurance market

Source link The rise of electric vehicles in the New Zealand insurance market

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