The insurance global market for electric and hybrid vehicles is likely to have substantial growth.
Market research company HTF Market Intelligence (HTF) expects to see a compound annual growth rate (CAGR) of 16.88% from 2024 to 2030, says Insurance Business Australia.
“This anticipated growth stems primarily from increasing adoption rates of electric and hybrid vehicles, driven by escalating environmental concerns and the push for sustainable transport solutions.”
Insurance Business Australia says the research provides critical insights designed to assist decision-makers in evaluating investment opportunities, pinpointing market gaps, and leveraging potential growth areas.
“With the rise of electric and hybrid vehicles, there is a growing need for specialised insurance products that address the unique aspects of these technologically advanced vehicles, including specific coverages for battery systems and charging infrastructure.
“However, the penetration of such vehicles into the broader auto market remains modest, which poses a challenge for insurers considering substantial investments in this niche area.
“Prominent players in the market, such as AIG, Allianz Group, and AXA Gulf, were recognised in the report for their efforts in shaping insurance solutions that cater to the electric and hybrid vehicle segment.”
The Australian federal government recently amended its proposed New Vehicle Efficiency Standard (NVES), which the insurance industry welcomed, says Insurance Business Australia.
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