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Time to recharge: Accelerating the rollout of EV charging infrastructure

As focus on the risk dynamics intensifies in an uncertain commercial environment, the insurance market must understand business models and true risks through engagement with EV-charging stakeholders.

06/19/2023

Charging infrastructure for electric vehicles (EVs) has been on the radar for many nations as demand grows for a sustainable future. Marsh McLennan’s report, Time to recharge: Accelerating the rollout of EV charging infrastructure, explores the challenges on progressing the rollout ambitions and suggests recommendations for key stakeholder, supported with global examples.

The origins of EVs dates back to 1830, and by the turn of the century they accounted for one-third of vehicles in the United States. Initially, EVs were favored over gasoline-powered vehicles which were noisy to drive and needed cranking by hand to start, however over long-distances the disadvantages of EVs became apparent. Lengthy charging times, inadequate charging infrastructure, and ‘range anxiety’, are all concerns that the contemporary EV industry is familiar with.

Meeting net-zero

The demand for EVs is undeniably on the rise as 2024 sees the introduction of the Zero Emission Vehicle (ZEV) mandate. Additionally, there are only 12 years left until the Government’s 2035 deadline for all sales of passenger cars to be battery electric vehicles (BEVs) or hydrogen fuel cell electric vehicles (FCEVs).

Although various countries have made some progress, there is still a long way to go to satisfy the projected demand for EV charging infrastructure for 2030 and beyond. Establishing a reliable network is crucial to meet national EV targets - a key part of achieving national net-zero goals.

The three biggest obstacles impeding the global deployment of charging infrastructure are:

Inefficient Public Processes

  1. Ensure coordination and a clear direction of roles and responsibilities.
  2. Prioritize the usability and safety of charging platforms.
  3. Enhance municipal authority capabilities to ensure efficient local rollouts.

Uncertain Commercial and Risk Dynamics

  1. Government incentives for private operators must march incentive type, size, and conditions to specific market needs.
  2. Charge point operators(CPOs) should explore new opportunities to gain maximum competitive advantage.
  3. The insurance market must engage with EV-charging stakeholders to better understand business models and true risks.

Grid Management Issues

  1. Use smart charging to shift EV-charging demand for peak hours.
  2. Explore charging hardware that minimizes grid strain.
  3. Establish national policies to guide investment and adoption.
  4. Focus on selecting the right vehicle-to-everything(V2X) plot projects.

As focus on the risk dynamics intensifies in an uncertain commercial environment, the insurance market must understand business models and true risks through engagement with EV-charging stakeholders.

To learn more about future risk challenges to the mobility industry and how they may impact you read Time to recharge: Accelerating the rollout of EV charging infrastructure, to find out what actions you can adopt to mitigate these risks.

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Sam Tiltman

Sam Tiltman

Marsh UK Industries - Sharing Economy & Mobility Industries Leader

  • United Kingdom

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Carl Gurney

Renewable Energy Director, Marsh