Tokio Marine Safety Insurance has announced a significant adjustment in its policy regarding new electric vehicle (EV) customers, stating that current insurance premiums will “temporarily” not apply to new EV customers, including those acquiring transferred vehicles.
According to a report from Bangkok Post, the insurer will now determine new premium rates on a case-by-case basis.
Speculation arose online suggesting that Tokio Marine had discontinued offering EV insurance altogether. However, the company clarified that while its services remain available, they are now subject to revised conditions.
Reevaluation of EV Coverage by Thai Insurance Companies
Industry insiders disclosed to Bangkok Post that Thai insurance firms are reassessing their approach to EV coverage in light of substantial fluctuations in EV prices and high claim values. Tokio Marine specified that renewal premiums for existing policyholders would be determined based on their individual claim histories.
Suwat Supakarndechakul, President of the Thai Automotive Industry Association (TAIA), mentioned that two insurers have reportedly halted offering EV policies.
“We are actively monitoring the situation to ascertain the circumstances behind these actions by the two insurance companies,” he stated, as reported by Bangkok Post. He further noted plans for meetings with global EV manufacturers, who are association members, and the Thai General Insurance Association (TGIA) to address this evolving issue.
Surapong Paisitpatanapong, Vice Chairman of the Federation of Thai Industries and spokesman for its Automotive Industry Club, expressed uncertainty about whether the two insurers intend to permanently cease offering EV coverage.
“We are uncertain if this decision stems from challenges in compensating customers,” he told Bangkok Post.
Clarification from Insurance Regulators
An anonymous source from the Office of the Insurance Commission (OIC) confirmed that no insurers have officially announced the cancellation of their EV insurance services. The OIC source clarified, “Regarding Tokio Marine, there may have been misconceptions about the cessation of its EV insurance service. Recently, the company clarified that it is adjusting conditions for existing customers and continues to accept transfers of black-plate cars,” as reported by Bangkok Post.
TGIA President Somporn Suebthawilkul stated that the association is urging members to disclose their methodologies for calculating EV insurance premiums.
Apisit Anantanatarat, CEO and President of Bangkok Insurance, had previously highlighted the unique challenges that EVs pose to the Thai insurance industry. He noted that EVs tend to have higher loss ratios compared to internal combustion engine (ICE) vehicles due to the specialized repairs and expensive spare parts involved.
In conclusion, while Tokio Marine and other insurers adjust their strategies in response to market dynamics, the broader industry remains engaged in navigating the complexities of EV insurance amidst evolving consumer demands and regulatory frameworks.
