Change is profound
This structural change will affect the business model of car insurance companies. The shift is practically inevitable. Driverless cars are already being tested on public roads and highways, not only in a slow-speed environment. The automobile industry is pushing hard to overcome any issues connected to both production and safety.
Car insurers will need to find new sources of revenue. They may start to provide insurance in the fields of cyber security or commercial liability. Or they could strike a deal with car manufacturers and emerging ride-sharing services, according to an article at strategy-business.com.
Safer cars mean lower premiums
The safety improvements brought about by self-driving technology will affect insurance risk models – even before fully autonomous vehicles become the norm.
Over 90% of accidents in the US are down to human error. Thus we can expect the situation to improve as more autonomous vehicles appear.
Pace of change depends on regulation
How quickly will autonomous vehicles replace traditional cars? Current regulations – at least in the US – are quite suitable for autonomous vehicles. The US driverless vehicle policy rather offers guidance for safety measures and how to ensure the use of autonomous vehicles is in compliance with traffic rules.
The flexibility of the policy has a clear purpose: the lengthy process of developing rules and standards for new technologies in the automobile industry is to be avoided. It is also expected that the new technology may provide transportation for millions of disabled Americans.
-jk-