Insurers and brokers must learn to adapt in order to stay relevant in a world of automated cars where only a quarter of the UK’s driving population is expecting to be served by the insurance industry.
New study by LexisNexis Risk Solutions found that just 26% of British motorists are expecting their insurance cover in a driverless future to be provided by the industry as it stands today.
The research said the scope for industry disruption is present, with 8% of consumers believing that coverage will no longer be needed in the future because of driverless cars.
Also, 16% of drivers expect their insurance to be provided by new market entrants or business currently outside of the industry such as car manufacturers.
Thirty-one percent of UK drivers also expect insurance to be provided at a lower price, according to the study.
The findings show that the industry will need to consider how to remain relevant and profitable as technology evolves, LexisNexis said.
"For the insurance industry, significant disruption lies ahead,” said Bill McCarthy, UK and Ireland insurance managing director at LexisNexis Risk Solutions.
“The successful motor insurer of the future, in our view, will be the one that is today seeking to understand how underwriting can keep up with or even pioneer the new car and data technologies, such as telematics, that are already revolutionizing the sector,” he added.
McCarthy said “the future for the sector is bright, but that the industry is best served through adaption and learning from the technologies and capabilities available today.”
According to the research, 50% of UK drivers view driverless cars as a good idea, but 23% believe that the technology will offer more drawbacks than benefits. Fourteen percent do not see any benefits at all.
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