Auto Insurers Not Ready for Self-Driving Cars: Report
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.”
SEE ALSO: Google Reports 12th Self-Driving Car Accident
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]
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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municipalities are not always responsible. i know one guy who bent a wheel on his SUV (not a sedan, not a CUV, but an SUV). There was a deep pothole that the municipality simply failed to block off with cones. He filed with the township, the township told him to file with his insurance first then get reimbursed, so he did and the township turned around and wrote him a letter saying they are not responsible, so the guy is now looking at higher insurance rates because he filed, and the city screwed him.
autoguide.....