MGA backs government bill to mitigate lithium-ion battery fire risks

Managing general agent (MGA) Prestige Underwriting has welcomed a government bill to reduce fire risks from electric power-assisted bicycles and lithium-ion batteries.

Called Product Safety and Metrology, the bill aims to ensure the ”UK is better placed to address modern day safety issues, harness opportunities that deliver economic growth, and ensure a level playing field between the high street and online marketplaces”.

As part of this, it aims to address the fire risk associated with e-bikes and lithium-ion batteries and clarify legal responsibilities for those supplying products, including online marketplaces. 

The plans were announced during the King’s Speech on 17 July 2024.

Alison Williams, managing director at Prestige, said: “We warmly welcome the government’s intention to legislate.

“While it is early in the process and there is much work to be done, we encourage other insurers to support the bill to reduce risks to human life and property.”

Fire risks

Williams explained that an “escalating trend” in fire-related claims, particularly fuelled by lithium-ion battery-powered devices, was a “considerable concern”.

Her comments came after the MGA revealed earlier this year (26 March 2024) that the average price of such claims rose from £6,583 in 2007 to £24,021 in 2022.

Meanwhile, according to London Fire Brigade (LFB) data from December 2023, there were 150 e-bike fires in London and 28 e-scooter fires last year, some 53% more than 2022.

Williams said: “Legislative change is urgently needed to reduce the risk to households from these devastating fires.”