Motor insurance may shift gear with rise of electric cars

Recent study says electric cars will make up over 50% of new vehicles in Europe in 2040

Insurance News

By Louie Bacani

The future of motor insurance may be reshaped by the continued rise of electric cars, which are predicted to become a sizable part of the vehicle population in the next few decades.
According to new research conducted by IHS Markit, sales of electric vehicles have skyrocketed by 1,000% from 2010 to 2016. The London-based information and analytics firm is expecting this trend to continue.
“Significant advances in battery technology, financial support from governments, regulations and values of millennials will be key factors leading to increases in electric vehicle adoption,” said Jim Burkhard, IHS Markit research chief for crude oil markets and energy scenarios.
Globally, electric vehicles could make up 15% to 35% of total new vehicle sales in 2040, according to IHS Markit’s estimates.
But in China and Europe, where policies are favourable to the technology, electric cars could comprise over half of new passenger vehicles, IHS Markit said.
“How and when this transformation takes shape will have significant impacts on the global economy and raises fundamental questions for the oil and gas, automotive, chemical and the electric power industries, as well as individual consumers,” said Tiffany Groode, head of IHS Markit automotive scenarios.
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