EVs, CAVs and insurance

This story first appeared in the november issue of evtalk – CLICK HERE to download the magazine FREE

The impact of electric vehicles on insurance along with the coming wave of connected autonomous vehicles (CAVs) caught the attention of more than 60 people at the Zurich NZ Motor Forum in Auckland.

Talking about “the accelerating pace of the evolving carpark”, Zurich NZ motor underwriting manager Matt McEneaney says the carpark in terms of transport types has changed considerably – and will continue to do so.

They have gone from fossil-fuelled cars to include more electrics and hydrids, and will go to connected and autonomous vehicles (CAVs) with vehicle ownership also changing to car share services.

Even flying cars like the Zephyr Airworks’ Cora vertical takeoff and landing air taxi being trialled in Canterbury could change the look of carparks on the roof of buildings and elsewhere.

McEneany expects CAVs will become part of fleet makeups within 10 years, He says feedback from vehicle leasing companies is that most are going to 90% EVs soon.

“We have to ensure we keep pace and that our pricing reflects that,” he says of vehicle insurance.

McEneany says the insurance side and risks keep changing too.

Talking about Zurich’s “basket of parts”, he says the top 10 for replacement parts include the front bumper, radiator, grille, condensers, lights and panels. Comparing costs for replacing the top 10 on different vehicles, McEneany says prices tend to go up on replacement parts for EVs, with about a $4000 difference between the three variants (fuel car, hybrid and EV).

Adding sensors like forward collision warning could make replacing just one sensor a significant cost too.

The increased cost of replacing wing mirrors was later broached at the summit, the addition of blind spot detection, lights and even cameras in them pushing replacement costs to about the $2000-plus mark.

Zurich risk engineering head Mervyn Rea says EVs are part of a new era bringing new risk assessments.

Providing a potted history of EVs from 1832 through to mass production of the Nissan Leaf from 2010, Rea says studies indicate about 27 million EVs will be on the roads by around 2030.

He suggests EVs are about 40% more likely to be in a crash than their ICE equivalent, mainly because the driver is unfamiliar with the tech involved – especially the EV’s greater acceleration.

Rea says EVs are so quiet they are a greater risk to other road users such as cyclists and pedestrians, hence the moves towards requiring them to emit a warning noise at low speeds.

He also outlined the risk of fire and electrocution from EVs involved in crashes. Small explosive charges (like those used in airbags) could disable the battery by ejecting connecting cables to avoid any electrocution risk – at least that’s one possibility.

Audi New Zealand general manager and Drive Electric board member Dean Sheed gave an update on EV makes and models coming, saying many different brands are on the way.

He also says lots of different technologies are in EVs now, pointing to the Audi e-tron’s camera wing mirrors, adding it all needs to be calibrated to pass a warrant of fitness.

Sheed says battery technology is rapidly improving too, with battery cells able to be individually replaced if required and thermal management ensuring longer battery life, batteries and some EVs also serving as energy storage units and supplying power back to the home or business.

“Most batteries have an eight to 10-year warranty, have a useful secondary life [storage] of about 20 years and can then be recycled.”

Sheed says solid state batteries are coming next. “So, battery technology continues to evolve.”

Asked whether Audi is developing autonomous vehicles, Sheed says with 5G becoming available, driverless technology will develop further.

Waste Management managing director Tom Nickels talked about transforming its fleet for the future.

Most agreed the afternoon forum was a good chance to catch up on developments and meet people working in similar fields, the event likely to be held again next year.