The Financial Services Authority (OJK) has called on general insurance companies to develop comprehensive risk mapping for electric vehicle (EV) insurance as part of its broader effort to promote the growth of the EV insurance market.
OJK’s Chief Executive of Insurance, Guarantee, and Pension Fund Supervision, Mr. Ogi Prastomiyono, emphasized in a recent statement that risk mapping must align with current global EV trends. He highlighted the unique risks associated with electric vehicles compared to conventional vehicles, necessitating distinct risk assessments to enhance the underwriting process and set appropriate premiums.
EV Insurance Pricing
Mr. Prastomiyono noted that several insurance companies have already introduced EV insurance products by incorporating features into existing combustion vehicle insurance offerings.
He clarified that the current tariffs for electric vehicle insurance products are still governed by regulations applicable to motor vehicle and property business lines. However, he stressed the importance of insurance companies conducting thorough underwriting processes for EV insurance, which includes setting appropriate prices and effectively managing EV-specific risks.
