Amidst Malaysia's ambitious push to position itself as a regional hub for electric vehicle (EV) innovation, there is a strong emphasis on integrating manufacturers and service providers into a rapidly evolving ecosystem that continues to drive innovation. This burgeoning landscape is increasingly seeing tailored solutions that cater to the unique challenges and opportunities of sustainable mobility. From infrastructure providers to automotive manufacturers—and now insurance companies—businesses across industries are introducing specialised products and services to complement and accelerate the country’s green agenda and mobility sector.
Against this backdrop, Liberty General Insurance Berhad (Liberty) is at the forefront with innovative insurance products tailored to address the unique needs of EV owners. With a deep understanding of the distinct challenges posed by EV technology, Liberty is meeting market demands by positioning itself as a driver of sustainable automotive practices locally.
Liberty’s journey into the EV insurance market began in 2023 with the launch of its InsureMyTesla product. This, however, was not purely a business-driven outcome.
"Liberty's exploration into the specific needs of insuring EVs was influenced by the growing prominence towards electric mobility globally and the need to cater to a market segment that is significantly different from traditional motor vehicles," explained Grace Quah, Chief Distribution Officer at Liberty General Insurance.
Grace Quah, Chief Distribution Officer at Liberty General Insurance
“Unlike conventional cars powered by internal combustion engines (ICE), EVs present a unique set of challenges. There are distinct technological intricacies. Among them are battery life longevity, the potential costs of electric-specific parts, and the different patterns in vehicle usage, driving behaviour, and charging requirements. These factors demand a completely fresh approach to claims and premium calculations,” Quah elaborates.
While acknowledging the steep learning curve, she also emphasised Liberty’s commitment to flexibility and innovation in adapting its products to consumer needs, while educating stakeholders.
Navigating Through Roadblocks
Insuring EVs is no simple task. For starters, the high cost of batteries, which are often the most expensive component of an EV, contributes to significantly higher premiums compared to ICE vehicles. Battery-related claims, whether due to accidents or malfunction, are complex and costly.
Meanwhile, the challenges extend beyond pricing. Insurance companies also have to navigate the complexities of EV-specific technology which require specialised expertise for risk assessment and claims management. The lack of historical data on EV usage patterns and repair trends further complicates underwriting.
Liberty's partnership with Tesla through the InsureMyTesla product marked a significant breakthrough, enabling the company to deeply integrate its services with Tesla's innovative automotive technology. This partnership ensured that Liberty's insurance products not only addressed the intricacies of EV technology but also met the high standards expected by Tesla owners.
“In comparison to our competitors, Liberty strives to offer more personalised and flexible insurance solutions. Our premiums are competitively priced and reflect the actual risks associated with individual EV models. We aim to differentiate our offerings by providing exceptional customer service and leveraging advanced data analytics to fine-tune coverage options and pricing. We are working on products to offer more specific EV protections beyond what a normal motor policy would cover,” said Judy Liu, Chief Personal Lines Officer at Liberty General Insurance Malaysia.
Judy Liu, Chief Personal Lines Officer at Liberty General Insurance Malaysia
The backdrop for Liberty’s foray into EV insurance is Malaysia’s ambitious push for EV adoption. And with incentives such as tax breaks, rebates for home charging stations, and green financing initiatives, the government is fostering an ecosystem that encourages both manufacturers and consumers to embrace the shift to electric mobility.
While this is exciting, Liberty believes that insurers should do their part to responsibly support government initiatives.
"Given the government's commendable efforts, it's essential for us as insurers to ensure our products are aligned with the national objectives to encourage EV adoption. At Liberty, we are dedicated to designing insurance offerings that support, rather than impede, the transition to electric mobility," explains Quah.
The Road Ahead
The future of EV insurance, as envisioned by Liberty, is one of personalisation and innovation. The insurer
"We expect to see insurance products highly tailored to individual driving patterns and vehicle usage; this will reward drivers who drive less and more safely. This evolution will likely be supported by enhanced data analytics, allowing insurers to better understand and mitigate risks associated with EVs. As a result, we can foresee more dynamic pricing models and a shift towards more customer-centric insurance services, making EV insurance more adaptive and aligned with users’ specific needs and lifestyles," Liu explains.
Liu also added that this progression will not only benefit consumers by offering more customised and potentially cost-effective insurance solutions but will also enable insurers to manage risks more effectively.
Liberty’s commitment extends beyond financial performance, reflecting a proactive approach to supporting the evolving needs of EV owners. The company also invests heavily in education and innovation, ensuring its team is equipped to navigate the complexities of EV insurance while helping customers make informed decisions. This dedication also extends to enhancing customer experiences, streamlining claims processes, and integrating feedback to develop more robust and responsive insurance offerings.
“The premiums collected from our insurance policies are primarily reinvested into the continual enhancement of our product offerings and service capabilities. This includes investing in technology to improve our claims processing, customer service platforms, and risk assessment tools,” Liu reveals.
Indeed, Liberty General Insurance continues to adapt and evolve with the times, catering to the growing demands and needs of consumers. By addressing challenges head-on and keeping an eye on future trends, the company has secured its position in the EV insurance market, while contributing actively to the country’s transition toward sustainable mobility.
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