How active insurance helps the EV market
Altelium offers active insurance for batteries, where our EV warranty programme helps extend the life of a vehicle battery by providing the owner or fleet manager with insights and feedback to maintain optimal battery health.
Why is this so important to the clean energy transition?
The EV sector is already hyper stimulated with demand outstripping supply. Latest research from across 18 countries shows that 52% of car buyers want their next car to be a BEV[i] but vehicle production is still only at 8% of global supply.
The $7,500 tax credit toward the purchase of any battery vehicle including plug-in hybrids, part of the U.S. Senate’s Inflation Reduction Act, is a huge incentive and will increase sales. Academic research suggests that every $1,000 worth of EV tax credits drives a 2.6% increase in EV sales[iv].
Combine this with a surge in battery energy storage – the 50 per cent increase in capacity of 2020 over 2019[ii] now looks to become annual cumulative growth – and demand for batteries will not meet supply.
To manage this challenge, there are only three options available: (a) raise battery and EV prices to suppress demand; (b) produce more batteries for vehicles and energy storage or (c) make batteries last longer.
Much has been written about options (a) and (b), but few realise the substantial difference that can be made by maximising the life of all the batteries, option (c).
Maximising the life of batteries is the quickest, cheapest and most sustainable way to manage the inflationary situation that has been created. It is also a common sense way to protect investment and resources.
Building in sustainable working practices and behaviours must be part of the green transition, which is why Altelium’s active insurance and EV warranty programmes are a vital help to the EV market.
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- Assurant partners with Altelium to advance battery electric vehicle protection and products
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Head of Corporate Communications
Tel: +44 7771 785228