Prestige Underwriting has drawn attention to the insurance implications of the UK Government’s newly enacted Product Regulation and Metrology Act, which includes measures aimed at addressing fire risks linked to electric power-assisted bicycles (e-bikes) and lithium-ion batteries.
The legislation, which received Royal Assent in July 2024, introduces new powers allowing the Government to update and enforce product safety regulations in response to emerging technologies. This includes the ability to impose or revise requirements for higher-risk products, such as e-bikes, e-scooters and consumer devices powered by lithium-ion batteries, which have been associated with a growing number of domestic fire incidents.
The Act also covers a range of regulatory functions, including product design standards, labelling, testing and post-market surveillance. By strengthening oversight in these areas, the legislation aims to reduce the risks associated with malfunctioning or unsafe products entering the market.
The company said the Act may play a role in limiting the frequency and severity of fire-related claims in the home insurance sector. The company has observed a notable increase in claims involving lithium-ion batteries and related devices. According to internal data, the average fire-related claim now exceeds £24,000, with battery failures identified as a growing contributing factor.
Meanwhile, Prestige Underwriting noted that the introduction of clearer product safety requirements could support the insurance industry in assessing and pricing risks more effectively. It added that the Act may also contribute to better risk mitigation by encouraging safer consumer behaviour, particularly around the use and storage of lithium-ion batteries in the home.
Alison Williams, managing director at Prestige Underwriting, said the increase in claims related to battery-powered devices highlights the need for improved regulation.
She said the legislation represents a necessary development to help reduce the risk of fire in residential settings. Williams also said the company supports the Government’s approach and encouraged other insurers to do the same in the interest of protecting both lives and property.
“This legislation is a crucial step toward safeguarding households from such devastating incidents,” Williams said.
