Allianz UK, one of the country’s leading insurance providers, is shifting gears in 2025 with an ambitious push toward full fleet electrification—a move that’s sending ripples through the insurance and corporate sustainability sectors. The company has taken concrete steps this year, ordering 160 new battery electric vehicles (EVs), which brings its total number of EVs in the UK to 307. That’s no small feat: these electric vehicles now make up 28 percent of Allianz UK’s entire fleet, according to reporting from Insurance Times and other industry sources.
But what’s driving this rapid transition? Allianz UK’s leadership points to a bold sustainability strategy. The insurer has set its sights on reducing carbon emissions by a whopping 70 percent per employee by 2030—a goal that’s as ambitious as it is urgent in today’s climate-focused world. In fact, the company isn’t just talking the talk. It reported a 47 percent reduction in greenhouse gas emissions per employee in 2024, measured against a 2019 baseline. That’s a significant leap, and it sets the stage for even bigger changes in the years ahead.
To make sure the transition to electric vehicles is as smooth as possible, Allianz UK’s procurement team rolled out a series of testing initiatives. These weren’t just your standard test drives. The company assembled an employee panel to put a wide range of EV models through their paces, ensuring that the vehicles would meet the diverse needs of staff across the country. Importantly, the trials also included assessments of adapted vehicles, designed for drivers with different physical requirements—an inclusive step that signals Allianz’s commitment to accessibility as well as sustainability.
"This move is an important one for us and underscores our commitment to sustainability, not only as an insurer but also as an employer. To support our customers across the country we need our employees on the road in vehicles fit for purpose that also align with our net-zero strategy," said Bethany Thomas, Head of Sustainability at Allianz UK, in a statement highlighted by Fleet News. Her words sum up the company’s dual focus: meeting the practical needs of its workforce while keeping its eye firmly on the climate action ball.
The nuts and bolts of the transition go beyond just buying new cars. Allianz UK introduced a new internal driver app, developed for both company drivers and their line managers. This app allows staff to record business mileage and track car journeys and emissions with improved accuracy. The system is designed to collect data that can inform both operational decisions and sustainability reporting, although the specifics of data collection and privacy remain under wraps for now. Still, the app’s launch is a clear sign that digital tools are playing an increasingly central role in corporate fleet management.
Allianz UK’s push for electrification isn’t happening in a vacuum. The company is a member of EV100, a global initiative that brings together businesses committed to accelerating the adoption of electric vehicles. EV100’s mission is to make electric transport “the new normal” by 2030, and Allianz’s fleet overhaul is a textbook example of the kind of corporate leadership the campaign hopes to inspire. The insurer’s commitment also dovetails with broader shifts in the motor insurance industry, where the rise of EVs is starting to reshape everything from risk assessment to claims management.
There’s no denying that electric vehicles present a different risk profile compared to their petrol and diesel counterparts. On the one hand, EVs generally require less servicing and help reduce overall emissions—a win for both the environment and operational efficiency. On the other, repairing electric vehicles after accidents can be a trickier (and pricier) affair. Battery systems are complex and costly, and not every repair shop has the expertise or equipment to handle them. For insurers like Allianz UK, this means rethinking underwriting approaches and claims strategies to stay ahead of the curve.
The company sees its own transition as a learning opportunity. By managing a growing fleet of EVs, Allianz UK is building valuable expertise that could give it an edge in developing new insurance products. As more businesses and consumers make the jump to electric, demand for tailored fleet and motor policies is expected to rise. Allianz’s hands-on experience—tracking everything from battery replacement costs to access to specialist repair networks—could translate into smarter, more responsive coverage options for clients navigating the EV landscape.
For the insurance sector as a whole, the shift to electric vehicles is more than just a technological upgrade. It’s a catalyst for broader change, ushering in new models of risk, new data streams, and new expectations from customers and regulators alike. The move also aligns with a growing public consensus: that businesses must play a leading role in cutting carbon emissions and tackling the climate crisis. Allianz UK’s progress, both in emissions reductions and in operational innovation, is likely to be closely watched by peers, policymakers, and environmental campaigners.
Of course, the road to full electrification isn’t without its bumps. Questions remain about charging infrastructure, especially for employees who travel long distances or work in rural areas. The up-front costs of electric vehicles, even as prices drop, can still be higher than traditional models—a challenge for companies managing tight budgets. And while digital tools like the new driver app promise better data and oversight, they also raise questions about privacy and user acceptance. Allianz UK will need to navigate these issues carefully as it moves toward its 2030 targets.
Still, the company’s progress so far suggests that the journey is well underway. With nearly a third of its fleet already electric and a clear plan for further reductions in emissions, Allianz UK is putting its money where its mouth is. The insurer’s experience may well serve as a blueprint for other businesses eyeing similar transitions—showing that with the right mix of technology, strategy, and commitment, the drive toward net-zero is more than just a slogan.
As the electric vehicle revolution gathers speed, all eyes will be on Allianz UK and its peers to see how they adapt, innovate, and lead in a world where sustainability is no longer optional, but essential.
