KEY HIGHLIGHTS:
-- EVs have gained significant popularity in the EU in the past five years, jumping to 25% of total new car registrations in January through September 2025 from 18% in 2021.
-- There are a number of factors indicating that insurance coverage of a battery electric vehicle (BEV) could be on average more expensive than a comparable internal combustion engine (ICE) model.
-- European insurers must adequately price their policies for EVs to preserve the underwriting profitability of their motor segments, which remain under pressure across Europe
"While BEV sales are gaining traction in the EU and the UK, insurance companies will need to update their risk models to price EV insurance appropriately", said Mario De Cicco, Vice President, Global Insurance and Pension Ratings. "Going forward, we expect the price difference between EV and ICE vehicle insurance to decrease as insurance companies gain more data about EV-related claims".
Morningstar DBRS WV Insurance Report
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