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Regulator advises judicious pricing of EV insurance

The Financial Services Authority (OJK) is urging general insurance companies to develop risk mapping for electric vehicle (EV) insurance, even as the regulator encourages the development of the EV insurance market.

Mr Ogi Prastomiyono, chief executive of OJK’s Insurance, Guarantee, and Pension Fund Supervision unit, said in a recent statement that the risk mapping must be in accordance with current global EV trends. He added, "The risks in electric vehicles are of course different from non-electric vehicles, so they require different risk quantification so that the underwriting process and premium setting can be better."

EV insurance pricing

He noted that several insurance companies have launched insurance products for EVs by adding features to combustion vehicle insurance products.

Mr Ogi explained that tariffs for electric vehicle insurance products are still based on a regulation that applies to determining tariffs for motor vehicle and property business lines.

"However, OJK urges insurance companies that sell EV insurance products to always carry out an adequate underwriting process, including determining adequate prices and managing EV," he said in the statement.


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