Insurance effect and law for Expensive new technology Car

Driving more environmentally friendly is therefore more expensive, and it is simply because more advanced technology in the cars is more expensive to insure.

The manager is concerned about changes in the risk picture, which are either structural or more permanent.

Lots of technology

An example is that it is much more expensive to repair more advanced cars with a lot of technology in screens and to repair electric cars. Then we have to make sure we have the right price for those cars. Every single customer and every item insured must have the best possible price.

The signal is, well, that in car insurance, we must expect that there will be somewhat higher prices due to structural changes in the car market, says the CEO, and continues:

Electric cars and hybrid cars are more expensive to insure than other cars, because they are more expensive to repair. We have damage statistics on single cars, and it is clear that if you take a single Peugeot or a single Volvo and compare models from for example 2016 to 2018, it may be loaded with much more technology in screens etc. This means that the screen needs to be replaced instead of repaired, so that kind of thing can have a significant impact, he continues.

Leiro Baastad says that after many decades they have seen the insurance companies exchange bonus information between each other.

It says something about the risks to the individual drivers. The bonus exchange has slowed down sharply and partly stopped, and there has been competition on these bonus systems. We now see that over 50 percent of all new cars are either electric cars or hybrid cars, which also represent another type of risk. This has affected the market in the sense that companies need more premiums behind those cars.

On Thursday, Gjensidige released the results for 2018, which were strongly characterized by the extreme weather last year.

How will you summarize 2018 for Gjensidige if you are dealing with the retail market?

I would like to point out that it has been a rather turbulent year due to lots of extraordinary weather effects. It was an extremely harsh winter where we saw many extraordinary car damage and many snow gravity damage. Winter stretched in both the first quarter and the second quarter, says Leiro Baastad.

Leiro Baastad says that after many decades they have seen the insurance companies exchange bonus information between each other.

I would like to point out that it has been a rather turbulent year due to lots of extraordinary weather effects. It was an extremely harsh winter where we saw many extraordinary car damage and many snow gravity damage.