Allianz UK Warns Motor Traders of Rising EV Battery Fire Risks

Allianz UK has issued a warning to car dealers regarding the increasing risk of lithium-ion battery fires, particularly in electric vehicles (EVs) and portable tools. The insurer reported significant property damage claims, including incidents exceeding $10 million due to faulty batteries that were improperly stored. While EVs are generally less prone to fires compared to traditional vehicles, the intensity of lithium-ion battery fires can lead to severe consequences, including thermal runaway, which poses challenges for extinguishing and can reignite days later. Concurrently, the Korean government has ramped up safety inspections for EV batteries in response to public safety concerns following a high-profile fire incident. This initiative aims to bolster public trust in EV technology while ensuring rigorous safety standards are met. As the adoption of EVs grows, the balance between innovation and safety remains a critical focus for both insurers and regulatory bodies.