Viriyah Mulls Higher EV Premiums

Why It Matters

The move signals a shift toward risk‑based pricing as EV adoption accelerates, affecting insurer profitability and consumer costs across the emerging electric mobility market.

Key Takeaways

• EV segment loss >10% combined ratio.
• Premiums to be adjusted per model risk.
• Viriyah holds ~40% Thailand EV insurance share.
• Traditional motor loss ratio target <58%, rose to 72%.
• Non‑motor premiums projected 9.71% growth 2026.

Pulse Analysis

The rapid growth of electric vehicles is reshaping motor‑insurance underwriting, as insurers confront higher claim severity tied to expensive battery packs and sophisticated electronics. Viriyah’s combined‑ratio loss above 10 % highlights the mismatch between premium income and the true cost of servicing EV claims. By shifting to a model‑by‑model pricing framework, the company aims to align premiums with each vehicle’s risk profile, rewarding models with lower repair costs while recouping higher expenses from premium‑heavy EVs. This granular approach mirrors broader industry trends toward data‑driven underwriting and reflects the need for actuarial precision in a nascent market.

Viriyah’s dominant 40 % share of Thailand’s EV insurance market gives it a strategic platform to influence pricing standards, yet the segment’s losses contrast sharply with its conventional motor portfolio, which targets a sustainable loss ratio under 58 %. Flood‑related catastrophes pushed the overall loss ratio to 72 % last year, underscoring the volatility of traditional lines. The divergent performance underscores the insurer’s balancing act: maintaining profitability on stable combustion‑engine policies while navigating the higher‑risk, high‑growth EV space. Consumers may see premium differentials based on vehicle make and model, potentially accelerating adoption of lower‑risk EVs.

Looking ahead, Viriyah’s broader diversification into non‑motor lines—projected to grow 9.71 % in 2026—provides a buffer against motor‑insurance volatility. Leveraging its nationwide agent network, digital marketing, and partnerships, the insurer aims to deepen product customization and brand visibility. As Thailand’s regulatory framework evolves to support electric mobility, insurers will need robust risk‑assessment tools, refined claims management, and flexible pricing models. Viriyah’s strategic pivot illustrates how legacy insurers can adapt to emerging technologies while safeguarding overall portfolio health.