The Impact of Driverless Cars and The Insurance Market

    Posted by MAIA on December 19, 2018

     A world where autonomous vehicles are ‘the new normal’ may still be many years in the future, but our industry is keeping a close eye on this emerging topic. In this recent article from IA Magazine, Senior Editor Jacquelyn Connelly spoke to Michael Klein of Travelers about how — and when — driverless cars will significantly impact insurance markets.

    "Driverless cars got a fair share of negative press earlier this year, when an Uber vehicle and a Tesla Model X, both equipped with some kind of autopilot mode, were each respectively involved in a fatal accident.

    But compared to fatalities when human drivers are at the wheel, the danger of autonomous vehicles is slim.

    Consider that 2016 alone marked 37,461 motor vehicle fatalities—a number which has been rising steadily since 2013, according to the Bureau of Transportation Statistics. And according to a study by the Insurance Institute for Highway Safety, Google’s nearly 60 driverless vehicles, which have covered more than 2 million miles, have been involved in fewer than two dozen collisions—none of which were caused by autonomous technology system failure. In fact, KPMG estimates that by 2050, autonomous vehicle technology will result in a 90% reduction in auto accident frequency.

    If all goes according to plan, won’t the U.S. auto insurance markets as we know them shift dramatically away from individual liability policies and toward product liability solutions in which manufacturers bear the brunt of the exposure for at-fault accidents?"... Read more.

     

    Topics: The Massachusetts Agent

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