LB Forsikring launches discounted insurance cover for climate-friendly cars

17 August 2020


Danish ICMIF member LB Forsikring has announced some good news for green car owners as the mutual insurer now offers a discount on car insurance for all cars that have achieved 5 stars in the Green NCAP test. Green NCAP is an independent initiative which promotes the development of cars which are clean, energy efficient and which are not harmful to the environment. It aims to improve air quality and to maximise the use of resources used for passenger transportation and to reduce global warming. LB Forsikring says it hopes this will give members greater incentive to choose climate-friendly cars and join the insurer in the push towards a green transition.

Electric cars are basically more expensive to insure than petrol and diesel cars. This is partly due to the fact that electric cars involved in 20 percent more accidents than other cars. Many of the accidents occur when the driver is surprised by the electric car’s rapid acceleration and accidents in the parking garage or when reversing.

Nevertheless, LB Forsikring, Denmark’s 3rd largest insurance company in the private market, has chosen to introduce a discount on climate-friendly cars.

“It is no secret that electric cars are more expensive to insure for several reasons. Therefore, it is untraditional that we go the opposite way, and make cars which are particularly climate-friendly cheaper to insure. We have chosen to do this because, together with our members, we want to push for the green transition,” says Steen Holse Andersen, Chief Commercial Officer, LB Forsikring.

Specifically, this means that LB Forsikring now offers a DKK 500 discount on motor insurance policies for all car types that have been awarded five stars by Green NCAP, which is an independent international standard known for its safety assessments.

LB Forsikring says it is the first insurance company in Denmark to distribute this type of climate discount on cars: “This is new territory for us to work with this type of discount. That is why we have also chosen to use other organisations to assess the climate impact on cars, while we deal with the business we know something about, namely car insurance,” explains Steen Holse Andersen.

The Danish Electric Car Alliance says it is pleased with this initiative from LB Forsikring.

“We very much welcome the fact that extra incentives are being created to switch from fossil to electric cars. It is clear that politicians have the opportunity to turn on the big buttons, but we should not underestimate the importance for both current and future electric car owners that their choice is positively supported by other actors that affect the overall economy in having an electric car”, says Lærke Flader, Industry Manager at the Danish Electric Car Alliance.

For LB Forsikring, the climate discount is another initiative that it hopes will create stronger incentives for the company’s 400,000 member policyholders to make green choices.

“There is no doubt that the climate challenge is very important – both in society and among our members. Therefore, it is also our obligation to create products and services that can help support a more sustainable development,” concludes Steen Holse Andersen.

In addition to the discount for climate-friendly cars, LB Forsikring recently also launched Denmark’s first car-sharing insurance with DKK 0 in deductibles and the company expects many similar initiatives in the future.

The climate discount is automatically deducted from the price of members with the car types that meet the requirements.

For member-only strategic content on the cooperative/mutual insurance sector, ICMIF members have exclusive access to a range of online resources through the ICMIF Knowledge Hub.

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