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Electric car transition to drag up insurance premiums, report warns
by cityam
Guy Taylor
THE TRANSITION to battery electric vehicles (BEVs) will “force a whole-scale adaption of the motor insurance sector” as it struggles to find a solution to the additional costs involved in insuring the new technology, a new report has warned.
BEV claims are already 25.5 per cent more expensive than their combustion engine counterparts and could rise “disproportionately” according to a new report from Thatcham Research –an organisation funded by the sector to investigate motor insurance risks.
As a result, consumers will have to fork out in the form of higher premiums.
“There is no part of the motor insurance claims process that is unaffected by BEVs,” Thatcham said. “Much of the motor insurance industry is yet to adapt to mass BEV adoption challenges, and the implications remain unquantified on repair capacity, training and skills, cost and the lifetime sustainability of BEVs,” Adrian Watson, head of engineering at Thatcham, said. inflation and rapid rate hikes.
The amount of cash raised via IPOs flatlined on the same period last year when £594m was raised from 26 issuers. However, analysts at EY said there were now more positive signs on the horizon after an uptick in interest in the second quarter.
“The last 12 months have been challenging for many businesses, however, as we start to see the green shoots of recovery, many companies which had delayed their IPO plans are now preparing to list again,” said Grant Humphrey, partner, strategy and transactions, at EY.
“With a healthy pipeline of IPOs for the remainder of 2023, we expect listing activity to rebound towards the end of 2023 and early 2024 once inflationary pressures ease, and companies have the stability and predictability required to realise their long-term growth plans.” The quiet first half in the capital came amid a wider barren patch in the global IPO market, with global proceeds falling 36 per cent year on year.
