Charging Ahead: How Insurance Can Fuel The Future of EV Adoption

As Indonesia accelerates its journey to becoming a global EV powerhouse—driven by abundant nickel reserves and strong government incentives – several factors will shape the success of its transition. One of the most critical is risk management as well the domestic EV infrastructure issues itself. With new technologies, supply chains and infrastructure challenges, is the insurance industry ready to play its part in securing the future of electric mobility? 
 

A well-prepared insurance sector can provide the stability and confidence needed for widespread EV adoption. From mitigating financial risks to supporting innovation, insurance will be essential in driving a seamless and sustainable shift to electric vehicles. 

Indonesia’s EV Growth: Gaining Momentum VS Infrastructure Challenges

The Indonesian government has set ambitious targets—2.2 million electric cars and 13.5 million electric motorcycles on the road by 2030. With the world’s largest nickel reserves and various tax incentives, Indonesia is well-positioned to expand its role in the global EV market. Currently in Indonesia, the EV market continues to grow, marked by a 152% increase in demand in 2024 compared to 2023 (GAIKINDO). The market is also expected to keep expanding, with up to 78% of consumers expressing interest in purchasing an EV.
 

However, as EV adoption gains momentum, ensuring long-term consumer confidence will be key. A strong ecosystem—including charging infrastructure, financing options, and appropriate insurance solutions—will help address challenges that could slow adoption. In terms of power issues, charging units are still heavily concentrated in major cities, and the average household electricity capacity in Indonesia is relatively low—typically below 2,200 VA—while home charging requires at least 7,700 VA.


And that's just the issue of power. Government incentives also play a role. So far, these have come in the form of VAT discounts on EV purchases, and only apply to EVs that meet local content requirements. On the battery side —the "life" of any EV— challenges also persist. Despite Indonesia being the world’s largest producer of nickel, the battery issue feels somewhat ironic. Batteries are often seen as the main problem in EV units, with long charging times and improper user handling making them one of the most frequently claimed components.

Insurance as a Catalyst for EV Growth 

EVs present new risks - come with unique characteristics, from high-voltage battery replacements to advanced software and cybersecurity considerations. As the industry evolves, insurance solutions must adapt to address these unique challenges. 
 

Despite the growing EV market, motor insurance penetration in Indonesia remains low, at just 20% of vehicles insured, significantly trailing regional peers like Singapore, where penetrations exceed 60%. However, this gap presents a significant opportunity for growth. 
 

As EV adoption rises and consumer awareness increases, insurers have a key role in driving accessibility and confidence in vehicle ownership. With evolving products and stronger industry collaboration, Indonesia’s insurance sector is set for transformative expansion. 
 

Insurers have the opportunity to introduce tailored solutions that align with evolving consumer expectations. This includes coverage for battery replacement, software updates, and liability for public charging stations – all of which help to reduce uncertainty and build trust in EV ownership. 

Insurer’s Role in Strengthening the EV Ecosystem

Recognizing these evolving needs, Oona Insurance is actively shaping the future of EV coverage. Oona RoadSmart offers comprehensive insurance solutions that are fully applicable to electric vehicles, ensuring that owners have access to comprehensive protection for a seamless driving experience. 
 

Our partnerships with EV manufacturers and dealerships allows us to offer EV insurance directly at the point of sale, making it easier for consumers to secure coverage at the time of purchase. Additionally, we are evolving our offerings to meet the news of EV drivers through: 
 

• Enhanced coverage for key EV components, including battery replacement and software updates
   

• Exclusive discounts that reward sustainable driving choices
   

• Data-driven risk assessment models to more accurately price and manage EV-related risks. 
   

By integrating these solutions into the broader EV ecosystem, Oona is helping build consumer confidence and accelerate Indonesia’s transition to electric mobility. 

Collaboration to Build a Sustainable Future

While EV adoption is rising, continued growth depends on a collaborative effort across sectors. Managing risks, enhancing trust and supporting accessibility require strong partnerships between: 
 

• Government agencies 
   

• Infrastructure developers 
   

• Automakers and financing institutions 
   

• Insurers
   

By working together, these stakeholders can create a well-rounded EV ecosystem that benefits both consumers and industry players. 

 The Road Ahead: A Collective Effort

The future of mobility is built on accessibility, trust, and security. Insurance is just one piece of the puzzle, but it plays a vital role in reinforcing consumer confidence and ensuring long-term sustainability. 
 

By collaborating across industries, adapting to new risks and offering tailored solutions, we can create an environment where EV adoption is not just rising, but thriving.

About Oona Insurance

Headquartered in Singapore, Oona Insurance is the leading digital general insurer in Southeast Asia, backed by global private equity firm Warburg Pincus. Established in 2022, Oona Insurance aims to become the general insurer of choice for both partners and customers through a buy-and-build strategy, leveraging the pillars of superior customer service, advanced technology, and a well-established brand across Southeast Asia. The firm currently operates in two markets in the region: Indonesia and the Philippines.

In Indonesia, Oona operates through its licensed general insurance entity, PT Asuransi Bina Dana Arta, Tbk. Oona Indonesia, the new unified brand of this entity, has been offering quality products and services since early 2023, serving as a solid foundation for Oona Insurance's expansion across Southeast Asia's fast-growing insurance market.

Oona Indonesia is licensed and supervised by the Indonesian Financial Services Authority (Otoritas Jasa Keuangan).

For more information on Oona Insurance, please visit: www.oona-insurance.com