Green insurance for Electric Vehicles (EV) in Malaysia: emerging trends and challenges

The pace of Malaysia's sustainable mobility transition has increased significantly, confirming Electric Vehicles (EVs) as an integral part of the country's economic and environmental operational framework. This transformation is embedded in and strongly grounded in the National Energy Transition Roadmap (NETR) and the Low Carbon Mobility Blueprint (LCMB). To substantially reduce the factors driving climate change, Malaysia has recognized that transportation is the second-highest contributor. Accordingly, the government has set targets to reach 15% EV market share by 2030 and 80% by 2050 (Reyasudin Basir Khan et al., 2021; Umair et al., 2024). Recent data demonstrate that significant progress over time has proven effective. The EV market grew slowly over the last two decades, though it has reached an 'inflection point' in 2022 (Knittel & Tanaka, 2025). By the end of 2025, Malaysia recorded substantial growth in EV registrations, peaking at 9,652 units per month in December and increasing the total EV fleet to 113,585 units. Notably, the rapid accumulation of such high-value assets warrants the development of a specialized 'Green Insurance' structure to address the risks of modern EVs. The green insurance structure refers to insurance products specifically designed for environmentally sustainable technologies and assets, as well as for risks unique to EVs. Examples include damage to batteries and charging infrastructure, as well as failures of advanced electronic systems (Hu et al., 2023; Lin, 2025). Accordingly, the EV market recorded exponential growth, with monthly registrations reaching 9,652 units in December and a cumulative fleet of 113,585 units by the end of 2025 (Umair et al., 2024). Hence, the rapid accumulation of such high-value assets warrants the formation of a specialized 'Green Insurance' structure to address the risks of modern EVs.