Self-driving cars continue to impact everyone involved with the auto industry.
In a recent report from USA Today, auto insurers aren’t ready for the changes that autonomous vehicles will bring to their business, but the vast majority of car insurance companies also believe that the technology won’t have a significant impact until 2025. The study was conducted by consulting firm KPMG and surveyed executives of insurance companies with about $85 billion in auto insurance premiums. It found that 84 percent of insurance companies believe self-driving cars won’t have a significant impact on their business until 2025.
“The disruption of autonomous vehicles to the automotive ecosystem will be profound, and the change will happen faster than most in the insurance industry think,” said Jerry Albright, a leader of KPMG’s actuarial and insurance risk practice. “To remain relevant in the future, insurers must evaluate their exposure and make necessary adjustments to their business models, corporate strategy and operations.”
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Most executives acknowledged that their companies need to learn more about the technology and how it’ll eventually impact insurance underwriting. For example, self-driving cars may enable vehicle owners to drive less in their own vehicles, but shared taxi services could mean the vehicle itself is on the road more.
Earlier this year, the Insurance Information Institute released a study saying that “There will still be a need for liability coverage, but over time, the coverage could change, as manufacturers and suppliers and possibly even municipalities are called upon to take responsibility for what went wrong.”
[Source: USA Today]