Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Insurers want to see good fleet risk management to keep EV premiums down, AFP says
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Insurers want to see good fleet risk management to keep EV premiums down, AFP says

Date: 08 February 2024   |   Author: Sean Keywood

Insurers have told fleets that minimising claim rates is the key to keeping EV premiums under control, according to the Association of Fleet Professionals (AFP).

The organisation reported in October last year that its members were complaining, amid substantial rises for all insurance premiums, of EVs being especially targeted.

AFP chair Paul Hollick recalled that the organisation's advice at that time was for fleets to engage with their insurers about possible solutions, and said many had been carrying this out.

He said: "The main message that is coming through is that insurers want to see evidence of good core risk management, and how this having an impact on claims rates.

"This might sound obvious but it seems they want to work with fleets to see that insurance fundamentals are being properly followed when it comes to EVs."

Hollick said that the mood could be summed up by one fleet manager, who had reported that "our insurer's view is that as long as we can demonstrate that we're managing the risk, such as by training drivers to use EVs, we won't see an increase in premiums".

He said that another had fed back that their insurer had indicated that the cost of repairing and replacing EVs would always be a distant secondary consideration to simply working to keep claims as low as possible.

Hollick said: "The fleet view is often that insurers don't like EVs because they tend to be expensive to buy, that parts are often in short supply, and that the electrical, mechanical and bodywork expertise needed to repair them is still in short supply.

"However, it appears that if you talk to the insurers themselves, they'll say that these things matter but only to a limited extent, and that the most important fact when it comes to controlling premiums is to do more to prevent EV accidents and theft.

"They also appear to want evidence that fleets have an understanding that EVs are different from ICE vehicles and to see this applied to risk management - driver training is mentioned - but really, they're mainly interested in the fundamentals."

Hollick said that the dialogues fleets were having with insurers were indicative of the importance of keeping channels of communication open with suppliers.

 He said: "Some fleets may view the attitudes from insurers that are being reported here with a degree of scepticism. However, we are certainly hearing from others who are doing what their insurer is asking in terms of managing EV risk that their premiums are not rising, or only by a little. 

"It shows that talking to suppliers in the face of rising costs can have an impact."



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