Demand for electric vehicle (EV) insurance is expected to rise sharply to 200,000 units next year, says Thaivivat Insurance (TVI) as the company launches a new product to capture high growth in the segment.
Some 100,000 units of the EV insurance would be new cars, with the balance policy renewals, said Thepphan Asvatanakul, senior executive vice-president of TVI.
"EV demand in Thailand continues to increase, with bookings at the recent Motor Expo surging 60% from last year. Roughly 60% of the models with the highest reservations at the expo were EVs," he said.
TVI is launching pay-per-use (PPU) motor insurance for EVs, a new product that can lower motorists' expenses by allowing them to turn coverage off and on through a smartphone app. TVI can check the use of cars via a device called TVI Connect.
"The product is an alternative for motorists, helping them to save money with the same conditions offered for general EV insurance, with a starting price of only 1,700 baht," said Mr Thepphan.
The PPU policy is available for many EV brands, including Tesla, Changan, BYD, MG, NETA and GWM's Ora.
TVI has offered PPU insurance for traditional cars for many years before making it available to EV owners.
"EV insurance prices are quite high compared with those for cars powered by internal combustion engines," he said.
"The company sees this as an opportunity to offer a good option to EV owners who don't drive frequently."
Through TVI's app, motorists can also use other services such as searching for charging stations, garages and hospitals, as well as checking car conditions, car washing services and parking spots, said Mr Thepphan.
President and chief executive Jiraphant Asvatanakul said TVI is preparing to expand its hospital network in all regions, coupled with the growth of both the motor and non-motor sales channels, by locating brokers at large retail stores and financial institutions.
By making it more convenient to access insurance products, TVI can upgrade consumers' quality of life and improve the image of the Thai insurance industry, he said.
"The industry next year will see more intense price competition with new multinationals entering the market," said Mr Jiraphant.
"But with our strengths and the understanding of Thai consumers it will enable us to develop services and products to serve their needs and solve the pain points in the industry."