Page 31 - Insurance Times July 2024

Electric

Revolution:

Insurance in the

Era of Electric

Subasree Sampath
Vehicles domain consultant at LTI
Works as an insurance

Mindtree.

EVs are renowned for their advanced software algorithms that control various functions. It is
essential to note that when the EVs connect to charging stations, the cable not only transmits
power but also exchanges a multitude of data. This expanded risk surface increases the
vulnerability to potential cyberattacks, which could involve data theft or the introduction of viruses
to manipulate the system.

Charging system the charger, which could cause serious accidents during
charging. Charging involves the transmission of high-voltage
The "charging system" includes various elements, like home
electricity, and malfunctions can result from factors such as
and outdoor charging infrastructure, as well as hardware physical damage, wear and tear on the charging port,
components such as charging stations, ports, connectors,
connector, cable, or software glitches. There is also a
cables, and the necessary software for user authentication,
potential risk of electric shock from a compromised charging
billing, and remote monitoring. The range of EV charging system.
systems varies from home-based Level 1 (120 Volts) chargers
to public Level 2 (220/240 Volts) chargers and high-power EVs are renowned for their advanced software algorithms
DC (480 Volts) fast chargers, all designed to meet the diverse that control various functions. It is essential to note that
needs of electric vehicle owners. The primary hazard when the EVs connect to charging stations, the cable not
associated with EV charging is fire. The cause of the fire is only transmits power but also exchanges a multitude of
often outdated electrical wiring and an unstable power data. This expanded risk surface increases the vulnerability
supply in the charging location. If charging is done at home, to potential cyberattacks, which could involve data theft or
such incidents could damage both the EV and the property. the introduction of viruses to manipulate the system. In a
basic data breach scenario, personally identifiable
When using public charging stations, the consequences may information like car ID, owner details, location, billing, or
extend to damaging other vehicles and nearby properties. financial data could be at risk. More severe cyberattacks
The charging stations and ports are exposed to weather have the potential to compromise EV security, damage
events like heavy rain and flooding that could pose risks. software-controlled components, infiltrate the owner's
Additionally, these stations are susceptible to acts of home systems, undermine payment infrastructure, or
vandalism, such as tampering with electrical components or breach the energy management system of the grid.

28 July 2024 The Insurance Times