Watch: Electric vehicle charging points – how is the sector innovating and how can insurers support this growth?
In a recent Q&A interview, Ahmad Raja, UK Regional Manager - Engineering, Construction and Renewable Energy and Nigel Haddock, Inspection Leader, discuss the accelerated growth of electric vehicle (EV) charging points being installed across the UK. Watch the video now to learn more about how Aviva’s new innovative insurance offering can support businesses in this space and where our Risk Management team plays a role in ensuring these systems are safe.
Transcript for video Electric Vehicle Charging Points
AHMAD: Hi, my name's Ahmad Raja, and today I am joined by Nigel Haddock, and today we'll be discussing the Aviva EV ChargePoint proposition. So, Nigel, why do we need to be discussing electric vehicle EV charging points?
NIGEL: So essentially, we've got, uh, government targets, 300,000 units to be manufactured and installed by 2030. Now, I don't see that as a problem from a manufacturer and supply, it's the grid. At this moment in time, they just don't have the infrastructure. But we are in a position to get these assets electrically tested for safety, and we're all geared up for this.
AHMAD: Okay, thanks Nigel. So that's the government's aspirational targets. So currently there's roughly 49,000 commercial EV charge stations across 29,000 locations in the UK. Clearly, that's some way short of the government aspirations in this sector, but positively it does represent a 40% increase year on year. So this increase is being felt across the network and subsequently the demand for more innovative insurance solutions is coming to market.
If we look at future growth in the sector, there's lots of different areas that this sector can diversify into to meet the customer demand. And what we're already seeing is a 90% increase, year on year are the ultra rapid charges that have been installed across the UK.
Another area of diversification is where other renewable energy technologies are supplying power for the EVs.
So we're seeing wind, solar going into the integration process and also battery energy storage being integrated into the larger sites.
So all in all, there's a lot going on in the sector and it's actually a really interesting time for developers to come into that space and push the boundaries on what's possible to meet the future customer demand.
NIGEL: Okay, so what's the Aviva proposition? How can we help to support in this area?
AHMAD: So the Aviva proposition's twofold. Firstly, we have a product aimed at the installers of EV ChargePoint, where we can offer an all risk policy including testing, commissioning, and potential to add on delayed startup costs.
Secondly, we're able to offer an All Risks policy, including breakdown for the owners and operators of the EV charge stations with a potential to add on loss of revenue.
So if we look at the target markets and segments, we're currently getting the most traction from service station owners and operators, local car parks, landlords, and the local authorities.
NIGEL: Now that's really good. So, to support that, what we've been doing from an inspection side of things, I've been setting systems up, so internally we can add EV charge points for inspection really very easily for our existing book of business. So I've been able to arrange, from the inspection side, Bureau Veritas, who, as you know, is our statutory inspection provider to arrange for inspections from a safety perspective, and that will support our proposition.
AHMAD: Yeah and supporting the UK in its transition towards a lower carbon economy is at the forefront of our strategic development. It's an area we've worked really hard on at Aviva, and I'm really proud that we've been able to bring this product to market, pulling together experts from claims, underwriting and risk management with the hope that this can bring more capital investment into the sector. To support this ambition the EV charge points need to be operating efficiently.
Can you share any insights from BV to support this ambition?
NIGEL: Yeah, not only do they need to be working efficiently, they need to be working safely, and that's where Bureau Veritas has come in, and why we're very pleased that we've been able to set up, the inspection regimes to support our customers. Don't forget these, these items are working outside, they're in normal weathers. They're subject to impact damage. Leads will get damaged, charge points will wear, and it's the normal electrical safety that we have to consider for all these items. And so it's really important that these things are being operated more or less by untrained people who might be using this piece of kit for the first time. And so strategically, it's got to be easy to use, but it's got to be safe. And that's a really important aspect of this.
And Bureau Veritas will ensure they'll do two inspections per annum and each of those inspections, the thorough examination, electrical testing, testing of the RCDs.
So I'm really pleased that we've been able to engage with them to support us on the insurance product. From an inspection perspective, we've already seen a large increase on the book.
How do you see this playing out on the insurance side?
AHMAD: I'd mirror your comments, Nigel. As more EV charges are put in the ground and there's more capital investment coming into the sector, we expect the insurance requirements to increase. And I feel confident that we're well placed to match that demand. We have the appropriate risk management claims expertise and underwriting to really make a difference in this sector.
And I'm really proud to stand behind this product for Aviva.
And we at Aviva are excited to see how this product develops and how we can look to support our brokers and customers in ensuring a lower carbon economy in the UK. Thank you all for watching, and if you need any more information, please refer to the Aviva Specialty Lines Hub on the Aviva Broker website.
Want to know more?
To learn more about our electric vehicle charging point offering, take a look at our Specialty Lines Hub on the Aviva Broker Website.