Are EVs a hearth threat for insurers?

Most EV batteries are thought-about a low hearth threat and rigorous requirements apply, nevertheless a notion persists amongst media and the general public that EVs are a excessive hearth threat, some insurance coverage stakeholders say.

That’s in line with Insurance Business Australia which quotes an Worldwide Union of Marine Insurance coverage (IUMI) supply after the Fremantle Freeway automobile service hearth as saying EV fires are usually not extra harmful than inside combustion engine (ICE) fires and simply should be addressed otherwise.

IUMI has revealed a best practice guide for transporting EVs on ships with analysis about EV fires.

An accompanying launch suggests delivery neighborhood issues are rising about fires on automobile carriers however says analysis exhibits fires in battery EVs are usually not extra frequent or extra harmful than ICE fires.

As an illustration, whereas media hypothesis initially pointed to an EV contributing to the Fremantle Freeway hearth, Insurance coverage Enterprise Australia says more moderen information reviews say the hearth trigger continues to be unknown.

From March 2024, the Worldwide Maritime Organisation (IMO) will think about methods to scale back hearth dangers involving delivery.

The Insurance coverage Council of Australia (ICA) has beforehand mentioned any hearth dangers round EVs normally concern their charging stations or areas the place batteries are saved, including insurers have seen an increase in claims associated to such incidents.

Insurance coverage Enterprise Australia is searching for suggestions on the hearth situation.