EV insurance demand surges amid expensive claims

Underwriting pressure likely to raise premiums, writes Nuntawun Polkuamdee

- Nuntawun Polkuamdee

Thailand's electric vehicle (EV) insurance market is expanding at an unprecedented pace, tracking rapid growth in EV sales dominated by Chinese brands, which have overtaken Japanese automakers in market share.

The strong growth momentum is accompanied by persistent underwriting pressure, with insurers facing loss ratios exceeding 80% and repair costs 50% higher than those for internal combustion engine (ICE) vehicles, reflecting upward pressure on insurance premiums in 2026.

According to data from the Thai General Insurance Association (TGIA) and Thai Insurance Research and Development Co (TIRD), EV insurance risks are significantly higher than those of conventional vehicles, driven by greater accident frequency, more severe damage per claim, and rising exposure to flood-related losses as extreme weather events become more frequent.

TGIA president Somporn Suebt-hawilkul said the Insurance Bureau System, which surveyed private passenger cars with first-class insurance policies in 2024, highlighted stark differences across three risk dimensions.