Designing EVs for insurability
Source: Middle East Insurance Review | Jul 2026
Industry bodies across markets are calling for EVs to be designed with repairability in mind, says Swiss Re Institute in a blog.
The central challenge lies in batteries, which can account for around 40% of a new EV’s value. Many battery packs are not designed for straightforward disassembly, visual damage criteria vary by manufacturer, and even minor casing damage can lead to full replacement rather than local repair. A comprehensive “design for insurability” regime could make EV damage more economical to diagnose, assess, and repair.
The Insurance Council of Australia argued in its 2024 EV industry paper that OEMs producing easily repairable battery packs could help address the repair-cost issue. In the UK, Thatcham Research published an EV Blueprint in 2026 aimed at making EVs more repairable and extending their lifespan.
Examples of repair-friendly vehicle architecture include replaceable battery casings and brackets, accessible high-voltage diagnostics, resettable emergency safety loops, and standalone placement of vulnerable high-voltage components, according to Thatcham Research.
OEMs have begun leveraging such frameworks to embed repair-friendly design early in the development process to reduce repair costs and support more affordable insurance.
At the same time, the rapid expansion of Chinese EV exports into Europe, Latin America, Africa and the Middle East is bringing these insurability questions into sharper focus.
While these vehicles are highly competitive on price, they may also create challenges around spare parts availability, repair network readiness and claims handling, as insurers are still building experience with many of the newer brands. M