Tokio Marine shakes up EV insurance policies amid market changes

Tokio Marine shakes up EV insurance policies amid market changes | Insurance Business Asia

Motor & Fleet

Tokio Marine shakes up EV insurance policies amid market changes

Thai insurance companies reportedly reconsidering approach to EV coverage

Motor & Fleet

By
Roxanne Libatique

Tokio Marine Safety Insurance has announced a significant change in its policy for new electric vehicle (EV) customers, stating that its current insurance premiums would “temporarily” not apply to new EV customers, including those acquiring transferred vehicles.

According to Bangkok Post’s report, the company will instead determine new premium rates on a case-by-case basis.

The announcement follows online rumours suggesting that Tokio Marine had ceased offering EV insurance. The insurer clarified that while its services are still available, they are subject to revised conditions.

Are Thai insurance companies reconsidering their approach to EV coverage?

Industry sources told Bangkok Post that insurance companies are reconsidering their approach to EV coverage due to significant fluctuations in EV prices and high claim values. Tokio Marine specified that renewal premiums for existing policyholders would be based on their claim history.

Thai Automotive Industry Association (TAIA) president Suwat Supakarndechakul mentioned that two insurers have reportedly stopped offering EV policies.

“We are monitoring the situation to find out what happened with the two insurance companies,” he said, as reported by Bangkok Post.

He added that the association plans to meet with global EV manufacturers, who are association members, and the Thai General Insurance Association (TGIA) to address the issue.

Surapong Paisitpatanapong, vice chairman of the Federation of Thai Industries and spokesman for its Automotive Industry Club, said it is uncertain whether the two insurers plan to cease offering EV coverage.

“We don’t know whether this stemmed from problems regarding paying compensation to customers,” he told Bangkok Post.

Insurers have not officially announced cancellation of EV services

No insurers have officially announced the cancellation of their EV insurance services, according to a source at the Office of the Insurance Commission (OIC) who requested anonymity. The regulator confirmed that 23 insurance companies still offer EV coverage.

“As for the Tokio Marine case, there may have been a misunderstanding about the cancellation of its EV insurance service. Recently, the company clarified it is adjusting the conditions for existing customers and is not only accepting transfers of black-plate cars,” the OIC source told Bangkok Post.

TGIA president Somporn Suebthawilkul said the association is requesting members to present their methods for calculating EV insurance premiums.

Last year, Bangkok Insurance CEO and president Apisit Anantanatarat said EVs present new challenges for the Thailand insurance industry. He explained that EVs have a higher loss ratio compared to internal combustion engine (ICE) vehicles, mainly due to the specialised nature of their repairs and high cost of their spare parts.