Operations

Insurers Ponder Lower Premiums For Driverless Cars

Posted on July 29, 2016

(Creative Commons image)
(Creative Commons image)
The insurance industry has a $160 billion blind spot: the driverless car.

Car insurers last year hauled in $200 billion of premiums, about a third of all premiums collected by the property-casualty industry. But as much as 80% of the intake could evaporate in coming decades, say some consultants, assuming crucial breakthroughs in driverless technology make driving safer and propel big changes in car ownership.

As the threat approaches, U.S. insurance executives are spending millions and embedding with car companies, testing the technology themselves, and wrestling with whether to lower prices as parts of the autonomous future hit America’s roads.

For the actuaries who set insurance rates, it is a puzzle like no other: How do they prepare for a world of so many fewer auto accidents? In the future, will underwriters be insuring drivers or computer code?

Wall Street Journal article here

Related Topics: autonomous vehicles, driverless cars, insurance policies, passenger safety, Safety, Safety & Insurance, self-driving vehicles

Comments ( 0 )
More Stories
Article

Among The Leaders At The LCT Summit

AUG. LCT: The top operators in the luxury transportation industry who attended this year’s exclusive annual executive conference offer some best practices that can work in your operation.

Johnny McBride, owner of Lux Rides
News

Arizona Operator Goes From Gig To Good

eNews Exclusive: Johnny McBride would have never been exposed to the idea of a luxury transportation company if he hadn’t gotten his start as a part-time driver. 

Article

ELDs: Do You Really Need Them?

AUG. LCT: After April 1, 2018, drivers found out of compliance with electronic logging devices could be ordered out of service. Is your service at risk?