Shawn Ticehurst, Head of the IAG Research Centre, has delivered a confident message to fleet operators and the broader electric vehicle (EV) community: the risk of EV battery fires is “effectively zero” when systems are properly installed and undamaged. Speaking at the Smart Energy Expo in Sydney, Ticehurst outlined IAG’s extensive research into EV safety and costs, reaffirming the insurer’s backing of electric mobility in both private and corporate fleets.
“Our belief so far is that an electric vehicle that’s not damaged and with charging equipment that’s installed correctly, the risk of fire is zero,” Ticehurst stated. “That’s a risk we’re willing to take on.”
This evidence-based reassurance comes at a critical time, with continued growth in EV adoption across fleets and mounting public concerns—often fuelled by online misinformation—about safety risks associated with battery technology. Ticehurst acknowledged this issue directly:
“If you jump on YouTube, you’d believe every EV bursts into flames the minute it’s on a charging device. It’s simply not the case.”
To quantify the risk, he noted that of the 40 million EVs on the road globally, there have been just 511 confirmed fire incidents. IAG, which underwrites policies for major brands such as NRMA Insurance, CGU, and Rollin, is backing up its research by insuring buildings with EV chargers, provided installations are compliant.
Fleet Adoption on the Rise
As Australia’s largest general insurer, IAG has not only studied the sector—they’re actively transitioning their own fleet. Of the company’s 1,100 vehicles, 14% are battery electric, and a further 27% are either hybrid or plug-in hybrid. Ticehurst revealed that electric vehicles are delivering tangible cost benefits across IAG’s fleet:
“Over four years, in total cost of ownership, the electric vehicles are way cheaper, even when the retail price is higher,” he explained.
IAG is even taking an ultra-conservative stance in its cost modelling, assuming a $0 residual value after four years—yet EVs still come out ahead.
“No electric vehicle is going to be worth zero after four years,” he clarified. “But residual values are uncertain. We’d love to see industry and government support used EV sales to help stabilise those values.”
Insurance Industry Adapting
Ticehurst highlighted the unique nature of EVs—particularly their batteries—as both a challenge and an opportunity. He noted that EV batteries are “by far the most expensive component in a vehicle,” ranging from $15,000 to over $100,000 to replace. However, international trends indicate that modular battery repairs and second-life applications are emerging, helping reduce insurance and replacement costs.
IAG is working with global leaders like CATL, which operates over 500 battery repair shops in China, to explore similar pathways in Australia. The insurer is also collaborating with Queensland University of Technology and EV FireSafe to better understand and mitigate rare battery-related incidents.
Another insight shared by Ticehurst was the correlation between claims frequency and certain EV brands—though he was careful not to name names.
“We’re finding that claims frequency varies markedly by brand,” he said. “It’s not about EVs being more dangerous—it’s about driver education. People aren’t used to high acceleration or advanced driver assistance systems.”
He called for updated training models to reflect modern vehicles:
“We’re still licensing people as if cars were built in the 1980s. That needs to change.”
Confidence for Fleets and Building Owners
One of the strongest takeaways from Ticehurst’s presentation was IAG’s confidence in supporting electrification across sectors—particularly for commercial and residential property owners who have hesitated to install EV chargers.
“We are insuring apartment buildings and homes where EV charging is installed,” he confirmed. “Our underwriters know what to look for—we’re ready to take on that risk.”
This level of backing from a major insurer is crucial for fleets and strata managers planning infrastructure upgrades. By standing behind EV safety and long-term value, IAG is helping to remove one of the last perceived barriers to large-scale adoption.
As fleet managers look to decarbonise their operations, the message from Australia’s largest insurer is clear: the fire risk is virtually non-existent, the total cost of ownership is lower, and there’s full institutional support to keep the transition moving.
“We want to encourage people to buy used EVs,” said Ticehurst. “It will drive uptake and support residual values.”
The shift to EVs is no longer a gamble. With data in hand and insurers on board, the case for electrifying Australia’s fleets has never been stronger.
