When King Price Insurance decided to underwrite South Africa’s first electric vehicle fleet, it wasn’t just about innovation, it was about foresight.

For Jacques Pienaar, Head of Commercial Underwriting, this step represents both a calculated risk and a strategic learning opportunity that positions the insurer at the forefront of a changing mobility landscape.

“We realised early that this was a great opportunity to get involved and start our own internal learning process,” says Pienaar. “Being part of something new in South Africa’s transport ecosystem allows us to grow our understanding while supporting sustainability.”

A partnership built on trust and innovation - The initiative began when King Price was approached by Everlectric, led by Paul Plummer, who was piloting a proof-of-concept for an EV fleet. Pienaar explains that the relationship between Plummer and King Price’s CFO, who had worked together before, helped establish the trust and collaboration needed to make the venture possible.

“Strong relationships are often the foundation for good business,” Pienaar notes. “We were approached with a clear vision and solid groundwork, so it made sense to explore how we could be part of it.”

At the time, EV adoption in South Africa was minimal. Information was scarce, and most available data came from international markets. But King Price saw the potential to start early and learn from the ground up, an approach that aligns perfectly with the insurer’s reputation for challenging conventions.

Underwriting the unknown - Insuring electric vehicles is not entirely uncharted territory, but in South Africa’s context, it presented several unique underwriting challenges. For King Price, the process began with understanding the risk profile of these vehicles and their intended operations.

“We approached it like any other courier-type risk,” Pienaar explains. “The vehicles are on the road all day, delivering parcels and groceries, nothing hazardous or particularly theft-attractive, but that still means high exposure and frequency of incidents.”

King Price’s team conducted a comprehensive assessment of Everlectric’s operation. They visited the dealership in Pretoria, inspected the workshop, reviewed how spare parts were managed, and examined the platform used to monitor vehicle charging. The goal was to understand the full lifecycle of the risk, from daily usage to repair logistics.

One early insight was that repair costs and turnaround times could be higher than traditional vehicles, particularly when servicing outside Gauteng. “A repair in Cape Town might mean parts being shipped from Pretoria,” Pienaar says. “So, while the structure of the insurance remains similar, we had to price for longer repair times and higher component costs.”