Allianz Insurance Suffers a Catastrophic Loss Probably Caused by Electric Vehicles!   Isn’t that Ironic?

An article in the British newspaper, “EXPRESS” in the May 11th edition shouted out: “The heightened appeal for electric cars may be causing a wave of cargo ship fires because they are not designed to carry lithium batteries safely. The new report, from Allianz Global Corporate and Specialty, said that bigger vessels carrying as many as 8,000 vehicles at a time concentrate the risk.”

The above commentary came about due to the potential insurance losses suffered from the sinking of the Felicity Ace in the Atlantic Ocean which happened to be carrying 4,000 Volkswagen vehicles including; Porsches and luxury Bentley vehicles and many were electric vehicles. An article on February 22, 2022 noted “a spokesperson for the salvage crew working on the burning cargo ship, who confirmed that “part of the fire is the batteries [in electric vehicles on board] that are still burning.” The paper said that according to Portuguese navy officials and salvage workers who have seen a cargo manifest, “it is clear that many of the cars on board are electric vehicles.” The fire, which started on Wednesday, has continued to burn into the weekend.

Allianz with their head office in Germany is recognized as # 1. of the top 10 global insurers ranked by 2019 non-banking assets and presumably took a significant hit as the value of the cargo on the Felicity Ace, now sunk, has been estimated at over $500 million.

Interestingly enough; if the loss of the ship and its cargo are eventually blamed on EV batteries, one should wonder; will Allianz drop their membership in the UN Net-Zero Insurance Alliance

The history of Allianz and perhaps their belief in “Energiewende”under Angela Merkel, former Chancellor of Germany, seemed to convince the German population of the ability to denounce the use of fossil fuels and nuclear energy and instead depend on renewable energy for their needs.  Evidentially that included transformation of the transportation sector and Allianz jumped on board.  They aggressively have promoted EV for over a decade as a simple search on their website determines.  As an example, in 2011 Allianz was a co-sponsor of an EV race consisting of two, three and four-wheelers! Their related press release stated: “We believe in the future of electric-powered cars, which will allow us to be mobile in a sustainable, emission-free and low-noise fashion.”  Anyone living near wind turbines (also supported by Allianz to achieve “net-zero”) to recharge those EV might not be happy to note how Allianz ignored noise emissions from wind turbines and their reputed “clean generation”! 

As it turned out Energiewende has turned out to be a very negative issue for Germany particularly with the ongoing Ukraine/Russian war impacting Germany’s need for natural gas resulting in them firing up many of their mothballed coal plants.  Net-Zero is starting to look like a nightmare not a dream!

So, one must wonder how Allianz’s worldwide offices and their executives are taking all this negative news affecting their support and push for “net-zero” and having to deal with an insurance claim that may well top $500 million appearing to have been caused by EV?

Net-Zero is starting to look like a nightmare not a dream now and as Alanis Morissette’s song title enunciated; “Isn’t that ironic”!

Author: parkergallantenergyperspectivesblog

Retired international banker.

7 thoughts on “Allianz Insurance Suffers a Catastrophic Loss Probably Caused by Electric Vehicles!   Isn’t that Ironic?”

  1. Batteries are temperature sensitive. To warm and they can auto-ignite. It is all about trying to ‘pack’ in as much energy as possible to get that range. It would be safer if they gave up some range, but what the heck. That is what happens when zealous marketers are dreaming in technicolor.

    Liked by 1 person

  2. Allianz just happens to be one of the ‘leading’ G7 Investors in ‘Support of Global Development Initiatives’. Here is their rep together & in collaboration with the Government of Canada, Catherine McKenna & Bill Morneau with the ‘leaders’ of the other investors at the G7 in 2018 who represent more than $6 million in assets under their management :

    Caisse de dépôt et placement du Québec (CDPQ)
    Ontario Teachers’ Pension Plan
    AIMC
    Allianz
    Aviva
    CalPERS
    Generali
    Natixis Investment Managers
    OMERS
    OPTrust
    PGGM ­

    BTW OTPP and OMERS were the largest recipients of tax funded subsidies in building EV stations under the Wynne Govt

    Like

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