.jpg)
BYD opens plant in Thailand with annual production capacity of 150,000 vehicles (Photo: BYD)
Thailand is a country in Southeast Asia that is rapidly developing EVs, and insurance has become crucial for the future growth of the EV market. Facing a loss ratio of over 90% for EV insurance, coupled with fluctuating prices in the new and used cars, insurance companies face challenges in setting appropriate insurance premiums.
EV insurance loss rate exceeded 90%
The Thai General Insurance Association (TGIA) has indicated that competition and the rapid depreciation of EVs may impact insurance value. The insurance loss ratio (overall amount of incurred losses to the insured amount), has surged to 90-100%. Additionally, maintenance and component replacement costs are 50-60% higher than those for ICE vehicles, affecting the profitability of insurance companies directly.
According to the Thailand Office of Insurance Commission (OIC), 23 insurance companies offer EV insurance. However, some companies have ceased providing EV insurance or have developed more stringent premium structures.
