Public Sector EV Spend is an Insurance Challenge & Opportunity

2024 EV9 GT-Line

Everyone in the insurance sector knows the challenges around EVs when it comes to battery vehicle claims; long parts delivery times, expensive recovery and storage, complex checks and repairs on battery packs, sensors, ADAS etc. even after minor bumps and scrapes. That said, the amount of money being spent on compliance to the Net Zero ideology across the public sector means that high premiums shouldn’t be a problem. After all it’s just taxpayers money. So the opportunity is there, for brokers and insurers alike.

Now, new research from Churchill Expert, the flexible fleet insurance provider, has found that over half of UK councils (53 per cent) have a standalone electrification strategy, or one that explicitly addresses their vehicle fleet as part of their wider climate strategy.

Local authorities have continued to invest in EV infrastructure in the past year, with 44 per cent of councils increasing the number of charging points at their depots year-on-year. The number of charge points increased by 1,117 last year, representing a 40 per cent increase in the number of chargers year-on-year, as the total number of chargers has increased to 4,615 across the UK.

Councils are also planning to invest record levels into EV charging infrastructure at their depots this year, with £12.8 million planned for 2023.  This is up 41 per cent from the £9.1million spent in 2022 and up 212 per cent from the £4.1million invested in 2021.

Overall, the number of electric vehicles in council fleets increased by 26 per cent this year. Councils have also been prioritising investment in EV vans ahead of EV cars. The stock of EV vans increased by 30 per cent in 2023 compared to a 21 per cent increase in the stock of EV cars.

The research also revealed regional differences in how different local authorities were shaping up in their goal to create a greener fleet. Scottish local authorities are leading the charge with electrifying their vehicles as 14.2 per cent of their fleet was electrified. Conversely, Northern Ireland is lagging compared to the rest of the UK’s councils, as only 2.8 per cent of their fleet is electrified.

Number of local authority-run electric vehicles, by region

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Source: Churchill Expert 2023

Nicola Richmond, Head of Churchill Expert Flexible Fleet Partnerships, said: “Our research shows that councils are continuing to invest in electric vehicles and charging infrastructure at their depots, and it is great to see that over half have a strategy in place, which provides for a structured long-term plan. Even with the recent government changes in policy, we expect councils to continue to replace their fleets and improve charging infrastructure.”

About alastair walker 19486 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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