Thailand's non-life insurance sector is on high alert following reports that a Chinese electric vehicle (EV) manufacturer operating in the Thai market may be headed for bankruptcy -- a development that underscores growing concerns about EV insurance becoming a loss-making segment, said The Bangkok Post.
Insurance executives say the potential insolvency has sparked fears over rising liabilities, particularly for repair claims involving hard-to-source or unavailable vehicle parts.
According to media reports, Neta Auto Thailand’s Chinese parent company is under investigation over its ability to meet debt obligations.
Several Thai insurers have begun raising premiums on EV policies to reflect heightened risk exposure.
According to industry executives, annual premiums that once averaged around THB20,000 ($540) are now increasing to between THB25,000 and THB28,000—particularly for EV brands with limited-service networks and unreliable supply chains.
While most insurers are still accepting new policies for vehicles from the financially troubled brand, they warn that renewed contracts may carry much higher premiums.
It is also reported that some insurers are suspending coverage for specific EV brands or models, claiming complex logistics, limited availability of skilled technicians and higher repair costs.