Electric vehicles now account for the majority of new cars registered in Singapore – a structural shift compressing what most markets expect to take a decade into a matter of years, and one carrying direct implications for how motor insurers across the city-state price risk, design products, and manage claims.
Data from the Land Transport Authority (LTA) show that EVs made up 57.6% of the 13,322 new cars registered in the first quarter of 2026, equivalent to 7,679 units. The ascent has been steep: EV registrations stood at just 3.8% of new cars in 2021, rising to 11.7% in 2022, 18.1% in 2023, and 45% across full-year 2025, according to The Straits Times. For motor insurers, this is no longer a trend to monitor – it is the market they are already writing.
According to GlobalData, Singapore’s motor insurance industry is projected to grow at a compound annual growth rate of 5.7%, from SGD1.4 billion in 2026 to SGD1.7 billion by 2030 in gross written premium. Rising EV sales, alongside an 8.9% increase in traffic accidents in the first half of 2025, and EV-related elevated claims, are expected to push EV premiums higher through 2030. EV premiums in Singapore already sit 15% to 20% above those for conventional cars, driven by battery packs and specialised components that push repair costs higher, and by actuarial data that remain limited, according to Mordor Intelligence.
Comparable international claims data – drawn from North American markets, where no equivalent Asia-Pacific dataset is publicly available – indicate the cost pressures that accompany rising EV volumes. According to Mitchell’s “Plugged-In: EV Collision Insights” report covering 2025, repairable collision claims for EVs jumped 14% in the US and 24% in Canada, even as new EV sales slowed in both markets. EVs required an average of 1.70 sensor and system recalibrations per repair estimate compared with 1.54 for ICE vehicles, and 86% of EV parts expenditure went toward original equipment manufacturer components, with only 13% of parts deemed repairable rather than replaceable.
A Singapore-specific regulatory shift is adding further complexity for motor underwriters. As announced by Prime Minister Lawrence Wong in Budget 2026 and implemented by the LTA from February 2026, the Preferential Additional Registration Fee (PARF) rebate was cut by 45 percentage points, with the cap halved from S$60,000 to S$30,000 for vehicles registered from that date. Because all Singapore motor policies settle total-loss claims at market value at the time of loss, lower residual values flowing from reduced PARF rebates will decrease total-loss payouts, widen the gap between market value and outstanding loan balances, and increase the relevance of GAP coverage for financed vehicles.
In practice, EVs are less exposed than ICE vehicles to this change. Government incentives – the EV Early Adoption Incentive (EEAI) and Vehicular Emissions Scheme (VES) rebates – substantially reduce the Additional Registration Fee (ARF) that EVs attract, which limits their PARF exposure. The policy change therefore disproportionately raises the depreciation costs of ICE and hybrid vehicles while leaving EV ownership economics comparatively more stable, accelerating the fleet transition insurers are already pricing for.
Of the seven General Insurance Association (GIA) member insurers with dedicated EV products in Singapore, only Liberty Insurance (InsureMyTesla, up to S$100,000) and MSIG (MotorMax Plus, up to S$100,000 on death) currently offer explicit GAP coverage provisions, according to revolt.sg’s 2026 market comparison. For brokers advising clients financing high-COE EVs, the revised PARF framework makes GAP coverage a more material consideration than it was under the previous rebate structure.
The LTA and Enterprise Singapore elevated the national EV charging standard to Singapore Standard SS 722 from April 1, 2026. SS 722 extends coverage requirements to wireless charging, battery swapping, mobile charging systems, and cybersecurity for charging management systems – areas the previous Technical Reference 25 did not address. New chargers must comply within a transition period of two and a half years. For insurers, these additions broaden the set of insurable exposures around charging infrastructure and embedded software and signal that cybersecurity is now a regulatory concern for the EV ecosystem, not just connected-vehicle technology.
Allianz Insurance Singapore launched Electric Motor Protect in 2021 as one of the first EV-specific general insurance products in Singapore, covering high-voltage battery systems, home charging setups, advanced driver assistance system (ADAS) exposures, and malicious cyber acts. “As electric vehicles become more popular, the conversation is moving beyond adoption to ownership. Drivers are no longer just choosing EVs for their technology, but are increasingly focused on what it takes to protect, maintain, and support them over time,” said Hicham Raissi, chief executive officer of Allianz Insurance Singapore.
Across the Singapore market, seven GIA member insurers have now built EV-specific products, while a further group – including Etiqa, ECICS, DirectAsia, China Taiping, Sompo, Tokio Marine, HL Assurance, EQ Insurance, and FWD – write EV risks without dedicated policy structures. The policy wording differences between these groups are substantive. Allianz explicitly names ADAS-engaged accidents and malicious cyber acts as covered events. Liberty’s InsureMyTesla is the only product that explicitly covers LTA-approved Autopilot and Full Self-Driving capability features by name.
Sompo, however, explicitly excludes loss from cyber hacking due to inherent software or firmware manufacturers’ system fault in its November 2025 policy wording – a material caveat given that SS 722 now mandates cybersecurity requirements across Singapore’s charging infrastructure. Income Insurance’s eDrivo, launched in September 2024, introduced a 24/7 mobile charging rescue service, dispatching a DC fast charger to stranded EVs to restore up to 20% battery capacity, alongside a voluntary battery replacement excess offering a 5% premium discount in exchange for a S$3,000 excess on battery replacement claims.
“As EV adoption transitions into everyday ownership, insurance plays a foundational role in supporting this shift in mindset. Our focus is on ensuring protection frameworks evolve alongside mobility, so drivers can navigate electric vehicle ownership with clarity and confidence,” Raissi added. For insurers operating across Asia, Singapore’s market functions as a stress test of how quickly motor insurance product design, pricing, claims infrastructure, and policy wording must adapt when EV adoption accelerates faster than anticipated.
