The Mediating Agent Will Be Key To Gaining Share In The EV Insurance Market

Vehicles with alternative fuels have gradually made their way into the national market. Although the numbers did not seem too hopeful in the beginning, the progressive growth year after year in the number of registrations shows that they have come to stay. While Spain is still far from reaching the figures registered in countries such as Italy or Germany, in 2019 it was among the ten EU states with the highest number of electric cars in use.

Since 2017, a gradual rate of growth has been observed in our country in the number of private vehicles that belong to the “hybrid” and “electric” categories : at the end of 2019, they already accounted for 3.2% of the total registered vehicle fleet in Spain. This increase is marked by the policies derived from the community directives that force a drastic reduction of polluting gas emissions, which have begun to be applied by the municipalities at the national level, with restrictions on mobility based on traditional fossil fuels and investments in charging points.

What is clear is that users in large cities are already beginning to choose alternative travel formulas to the traditional “thermal” vehicle (gasoline and diesel): the perception of “free movement” without limitation of areas, in the case that one uses a hybrid or electric vehicle, is an important stimulus.

But there are still unresolved uncertainties that do not facilitate the purchase decision and also imply barriers:

• Range, which still affects long journeys today.
• The accessibility and capillarity of the charging points network.
• The possibility of assistance in the event of discharge or breakdown.

Given this scenario, for Reale Seguros participating in the second National Survey of Electric Car Drivers, carried out by All Media Consulting and Electromaps on a representative sample of the total park of electric vehicles in our country, has been a great learning opportunity. It has given us very interesting results on the needs of these drivers, as well as on what they expect from an insurance company when hiring a policy for their vehicle: these aspects will be taken into account when customizing our offer in terms of guarantees, rates, processes and provision of the service.

• Uno de los datos que nos ha sorprendido, por ejemplo, es que los EV owners from provinces such as Valencia, Alicante, or Vizcaya are the ones who most searched for insurance with specific coverage and services for this type of car; something that contrasts with the general belief that these searches would come from drivers in large cities, such as Madrid and Barcelona, ​​who would most demand these insurances.
• Regarding the services most in demand when hiring this type of policy, the survey indicates that the theft of the charging cable (39%) and roadside assistance for the transfer to the nearest charging point (24%) are the coverages considered more “essential” among this type of drivers.
• On the other hand, we have been able to confirm that mediators continue to be the majority channel through which insurance contracts take place, because, for these clients, the advice they receive from agents and brokers is a key factor in decision-making, something that fits perfectly with Reale Seguros’ commitment to Mediation.

As a summary we can say that our participation in the Survey has allowed us to:

• Better identify the driver’s profile.
• Understand their purchase motivations with more depth.
• Detect which variables have the greatest impact on hiring insurance.
• And find the essential coverages for the configuration of the “ideal insurance” of the electric vehicle.

Reale Seguros will continue to participate in research projects on sustainable mobility, which are aligned with our objective of integrating Social Responsibility as part of our business model; this will allow us to continue learning and acquiring the necessary specialization to modulate our offer.