Mexico’s EV Shift Pushes Insurers to Adapt with New Policies

Mexico’s shift toward electric and hybrid vehicles is creating new challenges for the insurance sector, as firms adapt to emerging risks tied to electromobility, according to an analysis by Grupo Interesse.

Between January and November 2024, sales of hybrid, plug-in hybrid, and electric vehicles rose 70.2% compared to the same period in 2023, INEGI reported. Meanwhile, EY’s 2024 Mobility Consumer Index shows that 49% of Mexicans intend to purchase an electric vehicle in the near term. Grupo Interesse noted that this rapid growth requires insurers to design policies covering high repair costs, battery vulnerabilities, electrical system failures, and cybersecurity risks in connected vehicles—areas not always addressed by traditional auto insurance.

“Electromobility not only redefines how we travel, it also forces insurers to innovate in products, services, and underwriting models. The key will be finding balance between safety, accessibility, and sustainability,” said Juan Carlos Alonso, Partner Director of Autos, Grupo Interesse.

Insurers are beginning to respond with specialized policies that include coverage for electrical systems and batteries. Some firms are also integrating digital risk management tools and providing dedicated technical assistance for electric vehicles.

According to Diana Ávalos, Director General of the Mexican Association for Electromobility Promotion (AMIVE), “In the past five years, the growth of electric vehicles in Mexico has been exponential, driven by lower battery costs and operational savings compared to combustion engines.”

To remain competitive, insurers must update risk models, invest in technical capacity, and collaborate with automakers and regulators. Grupo Interesse highlighted opportunities in updating risk assumptions, expanding service infrastructure, and strengthening responsiveness.

Anticipating future scenarios will also be critical. “The challenge is not only covering existing risks but foreseeing future ones,” Alonso added. Technological adaptation, talent development, and cross-industry collaboration will be essential to build a robust and trustworthy ecosystem for electric mobility.