Guy Carpenter has released new research examining the comparative risk profiles of electric vehicles (EVs) and internal combustion engine vehicles (ICEVs), based on data from Norway, the United States, and the United Kingdom.
A central dataset in the study includes information from more than 2 million EVs registered in Norway between 2020 and 2023. During that period, EVs and hybrids accounted for 42 % of total road traffic in the country.
The data covers more than 28 billion kilometers driven and over 2,300 reported accidents, providing a basis to assess how vehicle electrification is affecting auto risk.
The study notes that EV drivers tend to differ from ICEV drivers in terms of demographics. EV ownership is more prevalent among urban, higher‑income, and older households. Many EVs are also equipped with advanced driver‑assistance systems (ADAS), simpler drivetrains, and battery‑driven low centers of gravity, all of which can influence accident patterns and claims characteristics.
After adjusting for external variables, EVs were involved in 17 % fewer accidents per kilometer driven than ICEVs. The report attributes this to changes in vehicle design, improved infrastructure, and shifts in driver behavior, particularly following the COVID‑19 pandemic.
EVs were found to perform better in controlled conditions such as single‑lane roads, poor weather, and nighttime driving. However, they exhibited lower performance in complex environments like roundabouts and multi‑directional intersections.
Although EVs are associated with fewer accidents overall, the average severity of those accidents tends to be higher. On average, EV collisions involve 8 % more vehicles than ICEV incidents. Higher severity was noted in road types with complex layouts or higher speed limits, where EVs were more likely to be involved in multi‑vehicle events.
To evaluate claims costs, Guy Carpenter compared similar vehicle models by fuel type – such as the Hyundai Kona EV versus its gasoline‑powered counterpart. While average claim costs between EVs and ICEVs were broadly comparable, the distribution varied.
EVs were associated with more frequent low‑cost property damage claims, particularly involving minor collisions or ADAS repairs, while large bodily injury claims were less frequent.
This redistribution of claim types reflects a shift in loss composition: a reduction in higher‑end bodily injury losses and a rise in smaller property damage claims. The change could influence insurers’ loss ratios, especially if long‑term injury care costs continue to decline as a share of total payouts.
Guy Carpenter’s findings indicate that while EVs introduce new challenges – such as costlier repairs due to complex components – they also offer potential benefits through reduced injury severity and accident frequency.
EV repair expenses remain relatively high, driven by specialized components like batteries and advanced electronics. However, Gallagher Re previously reported that as repair networks gain experience and parts availability improves, the cost gap between EVs and ICEVs is narrowing.
Increased familiarity with EV systems and enhancements in underwriting practices are contributing to this convergence.
The market for hybrid and EV insurance is expected to expand significantly in the coming years. According to data from HTF Market Intelligence, the global hybrid and electric vehicle insurance market is projected to grow at a CAGR of 16.88 % through 2030.
This growth reflects rising adoption of EVs and the increasing need for policies tailored to their unique risks – such as battery damage, charging infrastructure issues, and regulatory incentives.
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