NIBA / Special Feature
The conflict in the Middle East and consequential fuel shortages and increased costs here in Australia have seen new vehicle buyers quickly reassess their view of electric vehicles (EVs). Add into the mix the growing public infrastructure, as well as the New Vehicle Efficiency Standard (NVES) and it may not come as too much of a surprise that interest in electric vehicles is increasing. To the end of May this year, 193,457 electric, hybrid and PHEV (plug-in hybrid electric vehicles), not including heavy vehicles, have been purchased in Australia. Petrol and diesel sales are still dominant – 282,609 – however it shows a significant increase from the 131,760 EVs sold in the same period last year. From a strata perspective, EVs present an interesting challenge. Logically, more EVs on the road equal more EVs – and batteries – in and around strata units – and charging infrastructure to install. What is clear is that EVs add a new dimension to strata insurance conversations – and it’s going to be an increasingly important conversation to have. “EVs and their charging infrastructure are becoming increasingly common in strata living, and are now a standard consideration in modern buildings,” says Kimberley Jonsson, Chief Executive Officer at CHU.
“The conversation is shifting from whether EVs should be utilised in apartments at all to how they can be accommodated safely and effectively, and through our underwriting practices we support the responsible adoption of EV charging infrastructure in strata communities. “We see climate change as the biggest long-term threat facing buildings, and supporting practical sustainability initiatives, such as the use of EVs, will be an important part of building resilience for the future.” Charging infrastructure creates new risks The installation, certification and maintenance of the charging infrastructure – as well as the number of charging stations – are key from an underwriting perspective. Much of Australia’s strata network was never designed for the level of electrical load required for chargers, with a report from the Strata Community Association (SCA), published in 2023, outlining that 54% of strata schemes were registered before 2000. Luke Scott, General Manager, Longitude Insurance, says, “An increased concentration of charging points may heighten the potential exposure to overheating or battery-related fire incidents.
relatively robust regulatory standards and certification requirements, which mitigate the likelihood of fire or related incidents. Notwithstanding this, insurers are placing greater scrutiny on EV-related exposures, including the number of charging stations installed and whether all equipment is operated and maintained in accordance with manufacturer guidelines and applicable standards. “In addition, there is an increasing focus on ensuring that charging areas are appropriately managed, including keeping them free from combustible materials or storage in close proximity, to further reduce risk.”
Jonsson says the regulation around EVs and chargers is beginning to catch up.
“In NSW, the pending Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025 introduces a clearer approval pathway for EV charging stations. Owners get stronger rights to install, while bearing the costs and indemnifying the owners corporation for maintenance and damage. Strata committees must respond within three months and cannot unreasonably object. “It's a meaningful step forward, but the legislative picture still varies across states. Practical issues like electrical capacity, cost recovery and fire safety also sit outside the law. Brokers who understand both the legal framework and the underlying risk will be best placed to guide their clients.” EVs only one part of the battery challenge A major component of an EV is, of course, the battery – which evolves the conversation onto lithium-ion batteries more broadly. Andrew Robson, General Manager of SUU, says it’s essential that everyone involved in a strata property is aware of the risks introduced by EVs, other modes of transport and everyday devices that contain lithium-ion batteries.
“However, it is important to note that EV charging infrastructure is subject to
“When preparing for the safe and responsible use, storage and charging
48 / INSURANCE ADVISER JUNE/JULY 2026
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