Insurers Warn EV Premiums Must Rise to Avoid Industry Risk
Kathmandu — Stakeholders have expressed concern that the insurance industry itself could come under significant financial strain if insurance premiums for electric vehicles (EVs) are not increased. The issue was highlighted at a program organized yesterday in Kathmandu by the Insurance Surveyors Association.
At a one-day seminar titled “EV Insurance Claim Dispute Management: Current Challenges and Emerging Trends,” organized by the Nepal Insurance Surveyors Association (NISA), participants concluded that immediate regulatory action is necessary to address the growing risks associated with EV insurance.
Although discussions on revising EV insurance pricing have been taking place periodically since 2023, no concrete decision has been reached so far. As a result, the non-life insurance sector is becoming increasingly exposed to risk.
During the event, surveyor engineer Buddhi Tamang presented a technical paper and conducted a session on EV insurance claim dispute management, focusing on current challenges and emerging trends.
He stated that insurance claims on EVs have reached levels comparable to the premiums collected, warning that the non-life insurance sector could face a major crisis if EV insurance premiums are not adjusted. According to him, insurance pricing must reflect the actual risk associated with EVs; otherwise, non-life insurance companies may face serious financial difficulties in the future.
Tamang also noted that discussions involving the Insurance Authority, NIMA, NADA, insurers, and NISA have already led to the formation of a committee tasked with developing a new pricing framework for EV insurance. He said that implementation of the proposed draft would provide some relief to the insurance sector.
The program also featured discussions on several related issues, including recent fraud trends involving EV insurance claims, key considerations for surveyors, battery condition assessment, regulatory oversight, future strategies, and methods for evaluating and assessing losses.