Battery Academy London School of Business and Finance Offers Expert Insights in National Electric Vehicle Discussion with Business Sector
LSBF Addresses Electric Vehicle Insurance Challenges in a Green Economy
The London School of Business & Finance (LSBF) is a renowned educational institution, serving over 25,000 students across more than 40 countries. Recently, Dr. Roy Yap, Head of the School for Business and Law at LSBF Singapore, shed light on the trends and challenges in electric vehicle (EV) insurance within a green economy.
One of the significant issues facing the EV insurance market is the rising insurance premiums. Due to higher repair costs, expensive labor, and parts shortages, EV insurance premiums are sharply increasing. In the UK, for instance, the average insurance premium for EVs now stands at £1,344, nearly double that of traditional petrol/diesel cars.
Another challenge lies in the repair and parts ecosystem for EVs. A weak parts and repair ecosystem inflates costs, often leading insurers to write off vehicles even after minor accidents. Developing a sustainable parts market is a top priority for brokers to reduce these costs effectively.
Advanced technology integration in EVs also contributes to increased repair complexity, labor costs, and the need for specialized technicians. The average repair cost for EVs exceeds that of gas-powered vehicles by over $1,000 per claim on average, and repairs take longer to complete.
Moreover, data indicates that EV owners file more claims than owners of traditional vehicles, with claim frequency reportedly 17% higher. This further pressures insurance cost structures.
As the rise of driverless and semi-autonomous vehicles is predicted by 2035, there is uncertainty about liability and risk allocation among drivers, manufacturers, and insurers. This complicates underwriting and claims management in the EV insurance market.
Higher insurance costs can deter potential buyers from purchasing EVs despite governmental incentives and environmental benefits, posing a hurdle to sustainable transportation adoption in green economies.
Despite these challenges, addressing these issues requires innovation in parts supply, repair capability, risk modeling for autonomous technologies, and policy frameworks to sustain EV growth while managing insurance affordability and environmental impact.
Established in 2003, LSBF offers over 100 programmes in business, finance, law, hospitality, and technology, making it a hub for knowledge and innovation. With campuses in key cities including the UK, Singapore, and Malaysia, LSBF is committed to making education accessible and relevant to the needs of the modern world. LSBF is a member of the Global University System (GUS) and holds EduTrust certification. Additionally, LSBF is an ACCA Approved Learning Partner and collaborates with reputable universities to provide internationally recognized qualifications. LSBF also partners with organizations like Grab, Deloitte, and ISCA to ensure its programmes remain industry-relevant.
- Recognizing the importance of environmental-science in shaping a green economy, LSBF's initiative to address electrical vehicle (EV) insurance challenges not only focuses on finance but also delves into the development of technology and education-and-self-development, particularly in nurturing expertise in parts supply, repair capability, and autonomous risk modeling.
- With its extensive portfolio spanning business, finance, law, hospitality, and technology, LSBF (London School of Business & Finance) positions itself ideally to contribute to the growing field of EV insurance, underpinned by its commitment to innovation and alignment with the demands of a sustainable and technologically advanced world.
