Thailand’s Non-Life Insurance Sector on High Alert Over Chinese EV Manufacturer’s Potential Bankruptcy
Thailand’s non-life insurance sector is on high alert following reports that a Chinese electric vehicle (EV) manufacturer operating in the Thai market may be headed for bankruptcy, according to The Bangkok Post. This development underscores growing concerns about EV insurance becoming a loss-making segment.
Insurance executives say the potential insolvency has sparked fears over rising liabilities, particularly for repair claims involving hard-to-source or unavailable vehicle parts. Several Thai insurers have begun raising premiums on EV policies to reflect heightened risk exposure. Annual premiums that once averaged around THB20,000 ($540) are now increasing to between THB25,000 and THB28,000—particularly for EV brands with limited-service networks and unreliable supply chains.
While most insurers are still accepting new policies for vehicles from the financially troubled brand, they warn that renewed contracts may carry much higher premiums. Some insurers are suspending coverage for specific EV brands or models, citing complex logistics, limited availability of skilled technicians, and higher repair costs.
The insurance industry’s growing wariness towards EV insurance comes as Neta Auto Thailand’s Chinese parent company is under investigation over its ability to meet debt obligations. The potential bankruptcy of the EV manufacturer has raised concerns about the long-term viability of EV insurance in Thailand.
As the situation continues to unfold, Thai insurers are likely to remain cautious about EV insurance, potentially leading to higher premiums and stricter policy terms for EV owners in the country.
