Insurance in the age of autonomy
Editorial by Andrew Dart
This month we contemplate the imminent demise of motor vehicle insurance as we know it due to the rise of cars that drive themselves. Just a scant 15 years ago, this was a topic that was firmly in the science fiction arena. Five years ago, it seemed possible, but in some distant future. Now, it is a literal gold rush. Every major motor car manufacturer, AI lab and some notable others are developing their own hardware and software to make fully autonomous vehicles a reality on our roads today.
So rather than a philosophical discussion, it has become a pressing issue of survival for some sections of the insurance industry.
In Rick Huckstep’s article this month, he looks at what vehicle autonomy means and the various levels it takes. He also spends some time with AXA UK’s David Williams to discuss the UK government’s progress on the legislation underpinning the entry of autonomous vehicles on to English roads. Finally, they discuss the four major impacts on insurance that self-driving cars will have. As usual, an excellent read from Rick.
In our second featured article for the month, Chris Nyce and Joseph Schneider of KPMG point to the coming decade of disruption. They call it “the chaotic middle” as we transition to the time where vehicles are fully autonomous. They recommend eight actions that auto insurers should consider if they want to survive this period of turbulence. By the way, I highly recommend you follow the link to The chaotic middle to see their research and papers on this topic – definitely well worth your time.
In my own article, I look at some of the forces that may delay or accelerate the coming of autonomous vehicles. I do make a bold prediction as to which country will be the first and why I think so. I also suggest some new insurance opportunities that will arise from autonomous vehicles, that could offset the shrinkage of the traditional auto insurance business.
Finally, our newsletter has a curated set of articles from around the world. You’ll find those below, if you want to dig deeper and see what’s happening with self-driving cars and trucks as they impact the insurance industry.
I am sure you’ll enjoy reading this month’s edition of InsurTech Insights sponsored by KPMG. Thanks again for taking the time to stop by – it really means a lot to us.
In Action InsurTech Insights
The motorcar is a wonderful invention. But, it comes with the unintended consequence of being a danger in the wrong hands.
By many accounts, highly autonomous vehicles should be on the road in the next few years. While drivers may be thrilled, this development may give insurance leaders some pause for concern.