General
Insurity’s 2025 Digital Experience Index reveals that 28% of Gen Z and 21% of Millennials have switched insurers due to frustrating digital experiences, highlighting the importance of seamless online and mobile platforms for younger policyholders. The survey also found many young consumers avoid filing claims because the digital process is cumbersome, threatening insurer trust and loyalty. While most prefer paperless interactions, trust in fully automated insurance remains cautious, especially among Gen Z. Insurity warns insurers must innovate their digital offerings or risk losing relevance as these generations gain purchasing power.
South Korea
Flooding triggers surge in Korean vehicle insurance claims
Heavy rains in South Korea have caused widespread vehicle flooding, resulting in over 3,100 insurance claims and estimated losses of around US$22 million. Industry officials expect more claims, pushing total losses even higher and worsening insurers’ loss ratios, which already exceed the break-even point. Regulatory concerns and rising repair costs have prompted discussions about potential premium increases, though timing remains uncertain due to government price stability goals. Meanwhile, across Asia-Pacific, digitalisation, telematics, and EV adoption are reshaping the motor insurance market, which is projected to grow significantly by 2030.
India
Tesla’s India debut prompts insurers to focus on EV-Specific motor covers
Tesla officially entered the Indian market on July 15, debuting with a showroom in Mumbai and launching the Model Y in two variants. In response, insurers like Zurich Kotak, ACKO, Liberty General, and Digit have introduced EV-specific motor insurance add-ons, focusing on battery, motor, and charger protection. These policies also include benefits like roadside assistance, zero depreciation, and return-to-invoice. Insuring a Tesla is costlier, with premiums ranging from ₹60,000 to ₹1.25 lakh annually. However, exclusions such as damage from unauthorized repairs, intentional misuse, or improper battery charging still apply.
UK
FCA flags rising motor premiums and ongoing claims handling concerns
The UK’s Financial Conduct Authority (FCA) says the sharp rise in motor insurance premiums is mainly due to external factors like higher vehicle repair costs, parts, labour, and theft-related claims. However, it also raised concerns about insurers’ claims handling, especially in the home and travel sectors, citing delays, high rejection rates, and poor oversight of outsourced services. The FCA is taking action against poor practices and contributing to a government-led effort to manage motor insurance costs. It also flagged issues in the premium finance market and will publish a full report by the end of 2025.
Germany
Tax return: Which vehicle costs you can deduct from your taxes
Car-related expenses in Germany continue to rise, leading many drivers to wonder which costs are tax-deductible. Generally, car repair costs are considered private expenses and are not deductible unless the vehicle is used for business purposes. Exceptions include using a private car for work or being self-employed, in which case repairs may be claimed proportionally. Drivers must keep detailed records, such as a logbook and receipts, especially if an accident occurs on the way to work. Additionally, insurance premiums and commuting distance (30 cents/km, up to €4,500 annually) can also be deducted.
