Modern Insurance Magazine Issue 62

FEATURES
Can the insurance
sector help to
accelerate the
adoption of EV?
James Roberts, Head of Insurance Sales, Europcar Mobility Group UK, discusses how vehicle rental can
support the insurance industry as it strives to match customer ambitions towards zero emissions.
To help customers make those ‘good financial
decisions’, businesses must provide a range of
suitable options from which they can choose.
However, sole supplier agreements make this
difficult to achieve in the insurance space. Insurers
working with only one CHO or replacement
vehicle partner are at risk of breaching their
Consumer Duty if there’s a perception that the
customer is not being offered the best choice for
their needs.
As consumer demand for electric vehicles
(EVs) continues to grow, the insurance sector is
shifting rapidly to keep pace. Policies have been
amended to suit electric and hybrid models,
and repair networks have updated training and
suppliers to ensure that they can work safely
on the increasingly electrified car parc. What
is proving more of a challenge, however, is
providing electric vehicles as replacements while
a policyholder’s own EV is being repaired after
an accident.
The cost and availability of EVs are two significant
blockers, especially for those insurers with sole
supplier contracts. Many such insurers have been
forced to scrap like-for-like vehicle replacement
policies. In light of the COVID-19 supply
shortage, they were left grateful to be able to offer
customers any kind of temporary vehicle at all.
If an insurer is unable to offer the best solution
for the needs of the customer, they could now
be at risk of breaching their Consumer Duty
requirements. And, as the electric car parc grows,
the demand for like-for-like vehicle replacement
should be the default – not the exception.
Meeting policyholders’
expectations
We recently commissioned a study amongst
electric car drivers, and found that 90% would
expect an EV replacement in the event of their
own vehicle being out of commission after an
accident 1 . Insurers unable to meet this expectation
risk damaging delicate customer relationships. The
Motor Ombudsman is already starting to see a
small rise in the number of EV complaints – with
the level of service delivered by businesses, and
problems encountered at the point of purchase,
highlighted as key concerns 2 . As EV adoption
moves beyond the early adopters and becomes
a mainstream choice, insurers are going to need
to keep up the pace or face reputational risk.
There are already around 840,000 fully electric
cars and 520,000 plug-in hybrids on UK roads 3 ,
making up more than 20% of the car parc and
representing a significant number of customers
who are likely to expect an EV replacement.
Drivers of ICE vehicles may also be tempted to
use the opportunity to test-drive electric if the
option was available for their replacement.
Electric rental
As the industry adapts to the growing electric car
parc, Europcar Mobility Group UK is working
closely with insurance providers, repair networks
and other key players to help them deliver
continued customer satisfaction and retention.
We are already committed to helping drivers
adapt to the new drivetrain as soon as possible
by providing easy access to EV rental. That
commitment now extends to replacement vehicles
through insurance providers.
Insurers selecting Europcar as their EV
replacement partner will have the confidence
that our network is increasingly electrified. More
than 200 charging points are already installed at
rental locations across the UK. Plus, each driver
benefits from a comprehensive vehicle handover
and support with charging instructions, alongside
a growing team of specialist Certified Electric
Vehicle experts on hand at many locations to
help customers as they get to know their rental
vehicle.
We provide a viable alternative to the sole
supplier conundrum, too. For insurance providers
who have historically opted for sole supply
contracts, moving away from this model will
ensure that they have contingency against vehicle
supply gaps, resulting in minimised friction from
the claims process.
Understanding the customer
experience
Drivers and businesses are increasingly
prioritising sustainability and zero emissions
mobility, and insurers need to be able to respond
to these key issues. By working collaboratively, we
can help with valuable insights and learnings as
our fleet of electric vehicles grows.
For example, a Europcar team took part in a
1,200-mile EV Rally earlier this year, tracking
across the British Isles from Cardiff to London,
Edinburgh, Belfast and Dublin. This unique
experience provides us with invaluable insights,
which are helping us to better serve customers
as they look for more environmentally friendly
vehicles. It also underlined the importance of
gaining real-world experience with a range of
options available, from a rental of a few days to
several months, and with the facility to try different
makes and models.
Although the vehicle landscape is changing,
motorists will appreciate an insurance provider
that is flexible and able to offer innovative
solutions to sustainable driving. Working with
the right vehicle partner is a crucial step towards
making this a reality within the insurance industry.
For further information, visit www.europcar.co.uk/
business
James Roberts,
Head of Insurance Sales,
Europcar Mobility Group UK
1
Survey via Vypr of 228 EV owners, conducted September 2023
2
The Motor Ombudsman- https://www.themotorombudsman.org/
press-releases/tmo-reports-a-small-rise-in-ev-complaints-from-consumersin-q2-2023
3
ZapMap- https://www.zap-map.com/ev-stats/ev-market
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