According to Allianz Global Corporate & Specialty's (AGCS) annual "Safety and Shipping Review 2022», the transportation of electric vehicles could be a new challenge for marine insurance.
Lithium-ion batteries, which are sensitive to displacement and high temperatures, are likely to ignite in rough seas or without proper storage conditions.
Controlling battery-related fires is also complicated, as the water needed to handle the flames can destabilize vessels. Another characteristic of thermal runaway batteries is the possibility of re-ignition with a delay that can exceed 24 hours.
As the demand for electric vehicles increases, shipping is under greater pressure and insurers need to be more capable of insuring losses.
As a reminder, on 1 March 2022, the Felicity Ace sank off the Azores (North Atlantic) after a fire broke out on board. The Ro-Ro container ship was carrying 4.000 vehicles, including 1.100 Porsches, 189 Bentleys and 1.900 Audis, etc., valued at 400 million USD. Experts believe that the lithium-ion batter-ies on board the Felicity Ace fueled the fire and led to the loss of the vessel.
In 2021, there were 54 total ship losses recorded. Sinking is the leading cause with 32 vessels. Fires and explosions ranked second with 15% of cases, that is 8 total vessel losses.
Read also | Electric vehicles: 50% growth expected in 2022 [4]