EV Insurance: Faris Elias Attrickie Calls for Smarter Risk Policies Amid Ghana’s Shift to Electric Cars

Accra, Ghana — The electric vehicle (EV) revolution is picking up speed in Ghana, but it’s not without complex insurance risks. At the just-ended 3rd Ghana Insurers Association (GIA) International educational seminar, Mr. Faris Elias Attrickie, Managing Director of Priority Insurance Company Ltd, delivered a powerful presentation on how the insurance sector must prepare for the rise of electric vehicles.

“The transport sector contributes about 17% of global greenhouse gas emissions, and EVs are central to reducing our dependence on fossil fuels,” Mr. Attrickie stated.

🔋 Understanding EV Insurance in Ghana

During his presentation, Mr. Attrickie touched on:

• The push for EV adoption worldwide

• Types of EVs (Battery Electric Vehicles, Plug-in Hybrids, Fuel Cell EVs)

• Unique risk characteristics and exposures related to electric cars

“Electric vehicles have higher values, use advanced technology, and need specialised labour for repairs,” he said. “This means higher repair and replacement costs — and more risks for insurers.”

⚠️ Key Risk Characteristics of EVs:

• Battery Fires & Degradation

• Expensive Parts & Repairs

• Advanced Technology Requiring Skilled Labour

• Water Damage & Overturning Risks

• High Theft Attraction

📑 EV Insurance: What Should Change?

To deal with these risks, insurers must:

• Understand EV implications

• Get underwriting right

• Use modern risk management tools

• Include proper exclusions and warranties

• Improve claims handling processes

📊 Ghana’s EV Growth & Government Policy

Ghana imported 17,660 plug-in electric vehicles between 2017 and 2021, according to the Ghana Shippers Authority.

In 2023, the Government of Ghana launched a National Electric Vehicle Policy, to be rolled out in 3 phases:

1. 2024–2026: Preparation and take-off

2. 2027–2035: Promotion phase (target: 35% EV penetration)

3. 2036–2045: Phase-out of traditional petrol and diesel cars

🔌 Key Challenges Highlighted:

• Limited charging infrastructure (less than 10 public stations, all in Accra)

• Lack of qualified maintenance and dealerships

• No standard policy or tariff for EV insurance yet

✅ Priority Insurance Recommendations:

• Create a standard EV policy for all insurers

• Avoid “excess bought-back” in early years

• Be cautious insuring commercial EVs

• Allow a 3–5 year learning period for insurers

• Benchmark against Norway, which has led in EV insurance since 1990

“Let’s not rush. Let’s get it right,” Mr. Attrickie concluded.

🔍 What This Means for Ghana’s Insurance Sector

This presentation sends a clear signal: as Ghana accelerates its EV adoption, insurers must innovate responsibly, with strong underwriting frameworks and risk-based thinking.

Last Updated on May 18, 2025 by samboad