The recently published WEF Global Risk Report and the Allianz Risk Barometer both have one focus on risks resulting from climate change. For example, according to the WEF Report, six out of ten main concerns over the next decade are environmental. 

Multiple types of actions are needed to solve such a far-reaching challenge. In accordance, increasing sustainability in motor insurance including reduced CO2 footprints were the core focus of the latest Allianz Motor Day panel discussion, during which cross-industry experts advocated various reliable methods to cut emissions. And so far, to inspiringly positive public reaction. 

The same survey, however, showed that only 44 percent of respondents believe electric vehicles are more sustainable than cars with combustion engines. “We have clear data in this respect. There is a big overall reduction of CO2 emissions with an electric vehicle compared to a conventional car. The problem is that there’s a lot of misleading communication about EV carbon footprints, specifically about the batteries”, pointed out Dr. Thomas Becker, Head of Sustainability and Mobility - BMW Group. According to Becker, sweeping or inaccurate messages are often spread, such as: “With the German electricity mix, an EV is no better than a combustion engine”, “Until all electricity is green, you shouldn't buy an EV", or "Cobalt is generally made with child labor".

"Our approach is to provide clean and differentiated information and to minimize risks, for example by not buying cobalt in the Congo, but in Australia and Morocco, or by using green electricity in our charging service," he explains. 

Too sweeping or misleading communication is also known by others: “It’s similar in the UK, and there’s still a lot to be done to educate people about EV’s. Misconceptions about EV’s such as range anxiety still keep consumers away from sustainable driving, and one role of insurance companies is to help them through their apprehensions”, concurred Hugh Kenyon, Pricing Director at LV= General Insurance. 

To fulfil the specific needs of electric vehicle drivers, EV dedicated insurance solutions are here to stay. Allianz - which is a founding member of the Net Zero Insurance Alliance with the goal of decarbonizing its insurance portfolios - will soon launch a ‘one-stop shop’ platform that aims at giving customers “peace of mind”, according to Laurent Floquet, CEO for Mobility and Assistance of Allianz Partners. Customer anxiety about buying a new or used electric car will be tackled by offering for example battery certification, mobile charging, wallbox installation, and specific maintenance packs. All of it aimed at making sustainable driving more and more attractive.

Greater cooperation on climate mitigation was one of the key appeals heard at WEF 2023. Speakers at the Allianz Motor Day panel discussion were in conformity with this course of action, already seeking cross-industry cooperation that could prove crucial in the worldwide effort for sustainability. “In the UK, we introduced the Green Heart Standard, a key part of which is sustainability. We then went to our body shop partners and marked it as the direction we want to travel to. They’ve all received the change very positively and got certification,” Hugh Kenyon pointed out. 

Technical partner AkzoNobel immediately endorsed the environmentally conscious initiative. “We’re a proud partner of LV= in the UK, so we’ve been closely involved with the Green Heart Standard. I think it’s a great first step that was very well received in the United Kingdom. It created waves in the market and a lot of industry partners followed”, said Sander Knip, Country Cluster Manager, Vehicle Refinishes, for the UK, Ireland and Benelux. He also emphasized that much of the initiative’s appeal rested in the development of demonstrable sustainability plans. “Being able to set objective targets, based on key performance indicators, is what the industry was looking for. We need to have actual measurable targets to meet,” Knip reflected.

And according to Donna Stewart of Allianz SE, there is something in it for every participant in the global effort for sustainability. “We need to collaborate and create standards that are agreed upon and accepted across industries. This way, people and companies can aim to meet the standards and gain certification to be part of the ecosystem,” she stated. 

With standardized cross-industry cooperation on the way, along with predominantly positive customer perception, the rate of acceptance of green initiatives within different markets could prove to be the key question. Allianz Motor Day panel speakers looked at the issue confidently, indicating that different countries and cultures might differ with regards to the time it will take to adopt green(er) ways - with everyone walking the same path, only at a different pace.