Global Shifts in Motor and EV Insurance: Market Pressures, Policy Changes, and Consumer Trends

China: Car owners complain about high prices, insurance companies seek change, and the 100-billion-yuan new energy vehicle insurance market may be approaching an inflection point

15 October 2025

China’s rapidly growing new energy vehicle (NEV) market—now exceeding a 50% penetration rate—has brought insurance challenges into focus, as car owners complain about high premiums and insurers struggle with rising claims and repair costs. Despite policy incentives and tax exemptions, NEV insurance remains costly due to higher accident rates, expensive components like smart sensors, and limited repair options. Many owners report rising premiums even without accidents, driven by insurers’ recalculated risk models and regional claim trends. However, with regulatory support and deeper industry cooperation, leading insurers like PICC, Ping An, and China Pacific Insurance are beginning to turn losses into profits, signaling that the NEV insurance market may be reaching a turning point.

Vietnam moves to update insurance law as market growth slows

15 October 2025

Vietnam’s Ministry of Finance is proposing updates to the 2022 Law on Insurance Business to address regulatory gaps and boost sector growth, which has slowed to around 10% since 2022. The draft amendments aim to simplify licensing, ease investment rules, and clarify agent roles to improve transparency. A new code of conduct for life insurance agency managers is also in development. Meanwhile, insurers have reported over VND357 billion (US$13.5 million) in estimated payouts from Typhoon Bualoi, with most claims related to property and motor insurance. Public feedback on the proposed legal changes is now being collected.

UK: FCA issues statement as motor insurer enters administration

15 October 2025

Premier Insurance Company, a Gibraltar-based insurer operating in the UK, has entered administration, prompting the FCA to urge customers to secure alternative motor insurance as soon as possible. Although current policies remain in effect, claims coverage may vary, and no mid-term changes can be made during the administration. The UK’s Financial Services Compensation Scheme (FSCS) will assist with valid claims, while administrators may cancel some policies as part of the insolvency process. Affected customers are advised to contact their brokers or BIBA for help finding replacement cover. The FCA clarified this situation applies only to Premier Insurance Company in Gibraltar, not similarly named UK firms.

AA and TyreSafe Survey Reveals Lack of Safety Checks by Drivers

14 October 2025

New research by The AA and TyreSafe reveals a worrying lack of awareness among UK drivers about tyre safety laws and maintenance. While most understand that worn tyres increase stopping distance, many don’t know the legal tread depth (1.6mm) or the penalties—up to £2,500 and 3 points per illegal tyre. Only 30% checked tyre pressure in the past week, and just 19% check tread depth weekly. The study also found significant knowledge gaps among younger drivers and women. Experts urge regular monthly checks to avoid accidents and hefty fines.

Most Australians overestimate EV insurance costs: Youi study

14 October 2025

New research from Youi reveals that while 56% of Australians believe electric vehicles (EVs) are the most expensive to insure, actual quote data shows EVs often fall within the same price range as conventional cars. The misconception highlights a broader lack of understanding around EV ownership — with 85% of Australians unsure about costs like charging, resale value, and insurance. Despite limited experience (only 7% have owned or leased an EV), interest is growing, especially among younger generations. Youi’s data also shows EV insurance quote volumes are rising, though at a slower pace, as more Australians consider sustainable transport.

Motor and Home Premiums Still Falling, Says Pearson Ham

13 October 2025

Insurance premiums for motor and home policies continued to decline in Q3 2025, according to Pearson Ham Group, though the pace of reductions is slowing. Motor premiums fell by 2.9% during the quarter, extending a downward trend since April 2024, while home insurance premiums dropped by 4.9%, marking five consecutive quarters of decline. Despite lower rates year-on-year, both remain above pre-2020 levels due to lingering inflation effects. Experts say the market is showing signs of stabilisation, with insurers shifting from broad price cuts to more targeted strategies based on customer risk profiles and distribution channels. This signals a more segmented and controlled competitive environment going forward.

Bentley partners with insurer and broker to launch new UK insurance service

13 October 2025

Bentley Motors has introduced its first bespoke insurance service in the UK, developed in partnership with Chubb European Group SA and Carbon Insurance Brokers. The offering covers all Bentley models—both new and used—from the brand’s 106-year history, with options including annual policies, five-day drive-away cover, and heritage insurance. Chubb will underwrite the policies, while Carbon will handle administration and claims. Bentley says the launch reflects its commitment to providing a seamless and luxurious ownership experience beyond just the vehicle.

Nearly half of UK drivers still let car insurance renew automatically: Report

13 October 2025

Nearly half of UK drivers still let their car insurance renew automatically, despite increased awareness of potential savings from switching providers. In 2024, 47% did not change their policy, contributing to an estimated £560 million in extra premiums. While FCA regulations introduced in 2022 curbed excessive renewal pricing, average premiums remain high, with many drivers overlooking renewal notices or believing switching isn’t worth the effort. Looking ahead, AI-based pricing, telematics, and flexible policy options are expected to drive more personalised and cost-effective insurance. These innovations, along with digital platforms and regulatory pressure, may gradually lower renewal costs for proactive consumers.

Ukrainians are buying electric cars at record rates: why has demand for electric vehicles grown?

12 October 2025

Ukraine is seeing a surge in electric vehicle (EV) sales, with a record 12,113 EVs registered in September 2025 — nearly 90% more than the same month last year. This growth is driven by rising fuel prices, improved EV technology, and a rush to buy before VAT is reintroduced on customs clearance, which could significantly raise prices. In 2025, over 55,000 EVs were registered in just nine months, with projections reaching 82,000 by year-end. Tesla, Nissan, and Volkswagen remain the most popular brands, and the EV fleet in Ukraine now totals nearly 194,000 vehicles. Despite a possible slowdown after tax changes, experts expect continued market growth supported by expanding charging infrastructure.

Advocates slam Manitoba auto insurance bill as unfair

10 October 2025

Consumer and seniors’ advocacy groups in Manitoba are criticizing Bill 49, which would formalize the province’s registered owner auto insurance model. They argue the system unfairly forces safer drivers to subsidize higher-risk ones, since premiums are based on vehicle owners rather than actual drivers. Despite past orders from Manitoba’s Public Utilities Board to shift toward a driver-based model, Manitoba Public Insurance (MPI) has resisted the change. Government officials defend the current approach as affordable and accessible, especially for youth and newcomers. Critics, however, believe a driver-based system would better align costs with risk and promote fairness.

Malaysians are buying more EVs than ever, but the motor insurance industry may not be ready for it — PIAM

8 October 2025

Malaysia’s general insurance industry grew by 4% in 1H 2025, reaching RM12.3 billion in gross written premiums, driven largely by a 5.7% rise in motor insurance due to booming electric vehicle (EV) sales. EV registrations nearly doubled, supported by new models like the Proton eMAS 5. Despite growth, the motor insurance sector remains unprofitable, with a combined ratio of 102.2% due to rising claims and accident rates. PIAM is studying the EV insurance ecosystem, given challenges like battery risks and repair readiness. Meanwhile, a new e-Police Reporting system has launched to simplify accident reporting on major highways.

Germany: What are the benefits of an exemption from vehicle tax for electric cars?

8 October 2025

The German government plans to extend the exemption of electric vehicles (EVs) from the annual car tax until 2035 to encourage more people to buy EVs. Currently, new electric cars registered until the end of 2025 are exempt from this tax for ten years. However, many users doubt the tax break is a strong enough incentive, as the car tax is relatively low compared to other costs like purchase price and insurance. While some argue the exemption supports the growth of e-mobility, others question its actual impact on buying decisions. Additionally, insurance costs for EVs can sometimes be higher, partially offsetting the tax savings.