In this episode, we explore the fascinating landscape of electric vehicles with Peter Divjakinja, Motor Risk Manager. Peter unpacks some of the complexity surrounding the evolving EV market, and the advantages and challenges these vehicles present for business owners who are considering adapting their fleets to meet changing sustainability and efficiency needs.

Guest Introduction

Peter Divjakinja is a risk management professional who excels in delivering quality risk management services and designing effective solution frameworks to corporate entities. Peter is responsible for supporting CGUs intermediated fleet customers with reducing risk and achieving budget and delivery goals and is currently undertaking PhD studies in Sustainable Mobility,

EV Market in Australia

• Made up about 8% of new car market in first half of 2024
• Number of models doubled to 80 in 2024

Fleet EV Adoption

• EV representation in Australian fleets is around 5%
• Most organisations are:
  • Conducting due diligence
  • Assessing vehicle suitability
  • Considering fitness for purpose

Range Anxiety

• A concern for long-distance and regional driving
• Requires careful planning
• Charging infrastructure is still limited
• Wait times at charging stations can be significant

Cost and Infrastructure

• Initial purchase prices remain high
• Infrastructure development is slow
• Government and organisations are working to expand charging networks

Interesting Insights

• Early data suggests lower at-fault accident rates for EVs
• Running costs 40-70% less annually
• Government is driving adoption through:
  • Stamp duty reductions
  • Direct EV purchases
  • Infrastructure investment

Advice for Fleet Owners

• Create a comprehensive project plan
• Consider:
  • Emission targets
  • Business operational needs
  • People and safety factors
  • Potential mix of EVs and hybrid vehicles

Resources

Read the CGU STRIVE Report 3.0

About CGU

For over 160 years, CGU has partnered with ambitious brokers to deliver exceptional insurance products and help bring peace of mind to their customers.

CGU offers our broker partners national reach, outstanding service and the financial strength that comes from being part of Australia’s largest insurance parent, Insurance Australia Group (IAG). Our value lies in its commitment to be the insurer who supports ambition of our broker partners and the customers we serve.

Visit the CGU website www.cgu.com.au

CGU recommends customers visit the National Insurance Brokers’ Association (NIBA) Need a Broker website to locate a trusted local insurance advisor.

Insurance issued by Insurance Australia Limited ABN 11 000 016 722, AFSL 227681trading as CGU Insurance Ltd. To see if a product is right for you, always consider the Product Disclosure Statement and Target Market Determinations available from www.cgu.com.au