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Insurance news August, 21 2025

India: Tesla Car Insurance Introduced in India Through ACKO Partnership

20 Aug 2025

Tesla has entered the Indian market with a new showroom and, in partnership with digital insurer ACKO, launched Tesla Car Insurance. The insurance is embedded into the car booking process, letting buyers get instant quotes, adjust coverage through real-time calculators, and receive policy documents digitally. Tailored for EVs, it covers batteries, charging systems, and advanced components beyond standard repairs. Claims are processed online, reflecting India’s shift toward digital financial services. This move signals growing demand for embedded insurance and could pave the way for usage-based, data-driven policies in the future.

American drivers ready to change auto insurance providers - report

20 Aug 2025

In Q2 2025, American drivers increasingly shopped for auto insurance, with policy comparisons up 9.4% and new policy sales rising 3.6%, the highest activity since 2020. Rate cuts, competitive marketing, and new vehicle sales fueled this trend, especially among single-driver households and smaller families. Direct-to-consumer channels outpaced agent-driven sales, while retention efforts were challenged as existing policyholders shopped more actively. Price sensitivity is rising, with nearly 40% of filings from top insurers requesting rate decreases, averaging 4%, while rate hikes remain limited. Insurers face pressure to balance competitive pricing with margins amid high claims costs and ongoing market volatility.

Mexico: The average cost of cars damaged by rain increases throughout the year.

19 Aug 2025

Heavy rains in Mexico City are increasingly damaging cars, with the average cost per affected vehicle around 70,000 MXN, according to AXA Seguros. The Mexican Insurance Association (AMIS) expects claims from rain-related incidents to rise by 10% this year, reflecting the growing impact of extreme weather. Historically, payouts for such damages have increased significantly, highlighting the importance of auto insurance that covers material damage. Experts advise drivers to consider comprehensive coverage and use comparison tools to find affordable policies that protect both vehicles and finances.

Australia: IAG’s profit accelerates on motor insurance strength

18 Aug 2025

Insurance Australia Group (IAG) posted a strong FY25 result, with net profit up 51% to $1.36 billion and insurance profit rising 21% to $1.74 billion. Growth was driven largely by motor insurance, supported by better supply chains, faster repairs, fraud detection, and migration of over five million policies to its enterprise platform. IAG paid $10.2 billion in claims, including responses to major floods and Cyclone Alfred, while also assisting 15,000 customers in financial hardship. The board declared a full-year dividend of 31 cents per share, up 15% from last year. Looking ahead, IAG plans to expand its motor insurance reach through potential alliances with RACQ and RAC, pending regulatory approval.

UK: PI claims overall – and motor claims in particular – fall to new low

18 Aug 2025

The latest Compensation Recovery Unit (CRU) figures show personal injury (PI) claims have dropped to record lows, with just 103,556 in Q2 2025 — 14% below even the Covid lockdown period. Motor claims fell to 72,534, less than half the level of 2019, while employer’s liability and public liability claims stayed stable. Matthew Maxwell Scott of the Association of Consumer Support Organisations warned the decline reflects barriers to justice rather than safer roads, as reforms have made compensation harder to obtain. He stressed that rising motor insurance costs are driven by repair, theft, and fraud expenses, not injury claims, and urged the government to resist further restrictions on genuine claimants.

India: Car Insurance Grey Zone: Will Your Policy Cover E20 Fuel Damage?

18 Aug 2025

India’s rollout of E20 fuel (20% ethanol, 80% petrol) has raised concerns over potential engine damage, with insurers offering little clarity on coverage. While newer cars are said to be E20-compatible, owners of older models report issues such as overheating, reduced mileage, and long-term wear. Insurers like HDFC Ergo and ICICI Lombard have avoided firm positions, citing a lack of regulatory guidance, while Acko clarified that only accidental damage is covered, not fuel-related wear. Until policies explicitly address ethanol blends, drivers face uncertainty, highlighting a major gap in India’s clean energy transition.

UK: AA calls for rethink on insurance premium tax

18 Aug 2025

British motorists paid nearly 9% more in Insurance Premium Tax (IPT) in 2024, with receipts reaching £692m, sparking concerns over affordability as premiums continue to rise. The AA has urged the government to cut IPT by 25% on motor policies and halve it for new drivers, warning that high costs risk pushing people into uninsured driving. The ABI echoed calls for reform, labelling IPT an “unfair levy” as motor cover costs surged to an average of £622 in 2024, up 15% year-on-year. Rising repair costs, theft, fraud, and labour shortages have further fuelled premium hikes, though early 2025 figures suggest slight relief with prices down 7% in Q1. The Treasury defended IPT as a key revenue source but said a joint taskforce is reviewing the issue.

Hyundai Insurance targets premium growth with electric vehicle focus

18 Aug 2025

AM Best has maintained a negative outlook on Hyundai Insurance (China) Co., Ltd. (HIC), citing expected deterioration in risk-adjusted capitalisation and ongoing operating losses. The insurer has shifted its focus to electric vehicle and ride-hailing motor insurance, but its transition from commercial property lines since 2020 has led to consecutive underwriting losses and a drop in capital from $240m to $180m. While efficiencies have improved the combined ratio, AM Best expects underwriting and operating losses to continue, with investment income too limited to offset pressures. HIC is projected to remain a small, niche player in China’s non-life market with little near-term growth potential.

UK: Older Drivers in Northern Ireland Are Paying More, Says CompareNI

15 Aug 2025

Older drivers in Northern Ireland are paying some of the highest car insurance premiums in the UK, with over-65s averaging £478 annually—around 10% above the national average. Rising premiums reflect an increase in serious accidents among older motorists, up 47% since 2010, and growing concerns over vision-related collisions. The NI Executive has launched a campaign to raise awareness about fitness to drive, while experts stress the importance of disclosing medical conditions to both the Driver and Vehicle Agency and insurers to avoid fines or voided policies. Insurance costs for older drivers can be reduced by shopping around, paying annually, reducing mileage, timing renewals strategically, and parking safely.

Trucking Insurance Premiums Reach All-Time High

14 Aug 2025

Insurance premiums for the commercial vehicle sector have reached record highs, driven by inflation, tariffs, litigation, and rising cargo theft, compounding existing challenges like driver shortages. Coverage costs are sharply increasing, with physical damage up 20–25%, umbrella liability 10–30%, and auto liability 10–20%. Fleet operators are focusing on cost management and vehicle upkeep, using preventative maintenance, component upgrades, and repairs to limit breakdowns and control premiums. Rising insurance costs, alongside fuel and tariff pressures, are forcing logistics companies to be more agile and strategic than ever.

Germany: Car insurance refund after deregistration of a car

14 Aug 2025

When you deregister a vehicle, your car insurance is usually terminated automatically, as the registration office notifies the insurer. If you’ve prepaid your premiums, you’ll receive a refund for the remaining period, calculated from the deregistration date. Selling the car transfers the insurance to the new owner, who can then choose to cancel or switch providers within four weeks. While the process is mostly automatic, it’s wise to confirm with your insurer to ensure refunds are processed correctly. Similarly, vehicle tax ends with deregistration, and any overpaid amount is refunded without needing a separate request.