The impact of electric vehicles on the Maltese insurance market and the general public

Abstract

The number of Electric Vehicles (EVs) has increased globally. However, like in some other European countries, the number of EVs in Malta is still low. Research studies, both on a national and an international level, were conducted to analyse the factors that mostly influence people when purchasing an EV. Driving range, lack of charging stations, lengthy charging time, high purchase price, safety, and design were some of the factors identified as pushing barriers towards the transition of EVs. On the other hand, research shows that EVs may introduce new risks due to high voltage electrical equipment in these vehicles. However, research on the effects EVs may have on insurance companies is limited. In view of these two scenarios, this study seeks to investigate; the attitudes and perceptions of the Maltese population towards EVs; and the impact of EVs on the Maltese insurance market. The data collected from the online survey distributed on various media platforms shows that purchase price, government incentives, and maintenance costs were identified as the three barriers that would influence the Maltese population heavily when purchasing an EV. Data gathered from the open-ended questionnaires, distributed amongst five Maltese insurance companies, show that insurance companies in Malta have adapted differently to EVs, and only one insurance company offers an insurance policy specifically for EVs. All the participants representing the insurance companies stated that the low percentage of EVs in Malta is due to other factors other than the risks associated with EVs. The findings of this research study can guide the relevant stakeholders to take the necessary actions to encourage more residents in Malta to purchase an EV.