Driverless Cars Disrupting The Insurance Industry

Driverless Cars Disrupting The Insurance Industry

Driverless cars are expected not only to disrupt the way we drive cars, but also the way in which car insurance is sold.

“There is a lot of debate about how [driverless technology] will impact the insurance industry,” said Nick Walker, managing director of RAC Connected Solutions, when Business Reporter spoke to him at Microsoft Future Decoded. “You have very bold manufacturers saying, our vehicles will never crash – if they do we will give you a new one so you don’t need to be insured.

“It is going to affect the insurance industry greatly, because there will be more predictable behaviour of these machines,” he continued. “There will not be this erratic human driving that exists. In some ways it is going to simplify it because you are assessing the risk of the vehicle and the vehicle technology much more than that of the driver.

“But equally, it is going to make it more complicated, because how on earth do you judge that risk? It is going to be quite challenging. You will probably also see a trend where you will get vehicle manufacturers trying to also become insurers. To me there is a strong possibility things are going to merge.” Read More

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