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
Let them know what they are in for (Photo via Unsplash user Van Tay Media)
Article

Hire Smarter, Not Harder

Follow this checklist and you’ll be drawing in and picking out the promising from underwhelming candidates in no time.

Vicki Shafer, executive director of operations for Shafer's Tour & Charter
News

She’s Stepping In And Taking Charge

eNews Exclusive: Operator Vicki Shafer has been through a lot but never shied away from taking on a leadership role in her company and the industry.