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July 30, 2021

Zego takes long-term view with cover for electric vehicle ride-hailing scheme

By GlobalData Financial

Zego is looking towards providing cover for electric vehicles within the UK’s ride-hailing market, and GlobalData analysis shows that while it has a small market to target for now, the strategy should pay off in the long run.

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What challenges are Electric Vehicles posing to the Insurance sector?

The global electric vehicle (EV) market is expected to grow ten-fold from $49 billion in 2020 to over $500 billion in 2033. However, the global rise in popularity of EVs is providing challenges for the Insurance sector due to this being a relatively new, unknown, and rapidly evolving technology. GlobalData’s Electric Vehicles and the Future of Motor Insurance free report focuses on the development of motor insurance policies that provide cover for electric vehicles and the corresponding challenges for insurers. The report looks at the potential size of EV insurance markets in three primary regions of EV uptake – these being Europe, North America, and Asia. This allows you to identify where the most profitable markets are expected to emerge. This reports key findings include:
  • Forecasting of the global EV market size from 2020-2033
  • Challenges facing insurers regarding supply chains, repair networks, and charging stations
  • Details on leading insurers in the top markets and their strategic partnerships
  • Competitive outlook by benchmarking companies such as Tesla, Toyota, and Volkswagen
Understand the challenges electric vehicles pose to the broader Insurance market. Download the report now.
by GlobalData
Enter your details here to receive your free Report.

GlobalData’s Vehicle Parc Database shows that the market for electric cars is very small at present, as only 0.7% of all cars in the world were electric in 2020. The picture is slightly better in the UK, where the scheme will launch, as 1.2% of vehicles are electric there.

However, electric vehicles is also one of GlobalData’s key themes. This means we have picked it as one of the key trends over the coming years. In the UK, no new cars using any petrol or diesel will be sold post-2035 in the UK, which will force electric vehicles into the mainstream. The sale of new petrol or diesel cars is banned from 2030, while 2035 is the final deadline for hybrid cars.

Zego is partnering with BP and Swiss Re to provide insurance for electric cars in a ride-hailing scheme in the UK. It is designed for professional ride-hail drivers in London, with Zego and Swiss Re looking to make it more convenient for them by providing the correct insurance as soon as the electric vehicle arrives.

This is an ambitious and potentially very successful long-term scheme for the three companies. These changes will have a huge impact on the motor insurance industry in the UK, with electric vehicles requiring different insurance needs and expertise to the more standard petrol or diesel ones. It makes it a significant opportunity for insurers to get ahead of their competitors and establish themselves as experts in the electric vehicle market. This would put them at an advantage as customers increasingly enter the market up to and beyond the 2035 deadline.

Free Report
img

What challenges are Electric Vehicles posing to the Insurance sector?

The global electric vehicle (EV) market is expected to grow ten-fold from $49 billion in 2020 to over $500 billion in 2033. However, the global rise in popularity of EVs is providing challenges for the Insurance sector due to this being a relatively new, unknown, and rapidly evolving technology. GlobalData’s Electric Vehicles and the Future of Motor Insurance free report focuses on the development of motor insurance policies that provide cover for electric vehicles and the corresponding challenges for insurers. The report looks at the potential size of EV insurance markets in three primary regions of EV uptake – these being Europe, North America, and Asia. This allows you to identify where the most profitable markets are expected to emerge. This reports key findings include:
  • Forecasting of the global EV market size from 2020-2033
  • Challenges facing insurers regarding supply chains, repair networks, and charging stations
  • Details on leading insurers in the top markets and their strategic partnerships
  • Competitive outlook by benchmarking companies such as Tesla, Toyota, and Volkswagen
Understand the challenges electric vehicles pose to the broader Insurance market. Download the report now.
by GlobalData
Enter your details here to receive your free Report.

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