Morning Briefing: Insurance industry not ready for driverless cars

Morning Briefing: Insurance industry not ready for driverless cars | Insurance Business America

Morning Briefing: Insurance industry not ready for driverless cars
Insurance industry not ready for driverless cars
While the auto manufacturers are keen to roll out driverless vehicles swiftly it seems the insurance industry isn’t ready and believes that the proliferation of the vehicles will be slow. A report by KPMG surveyed senior executives from some of the largest insurers in the US, with a combined auto premium book of $85 billion. It found that most were skeptical; 84 per cent don’t expect autonomous vehicles to have a significant impact on their business until 2025, while 42 per cent expect a significant impact in six to 10 years. Nearly three quarters of insurers feel they are unprepared for autonomous vehicles today and more than half believe that regulators will impede the adoption of the vehicles.

KPMG’s Jerry Albright commented: “Technology is making cars safer, impacting underwriting practices, claim frequency and severity as well as auto premiums. To remain relevant in the future, insurers must evaluate their exposure and make necessary adjustments to their business models, corporate strategy, and operations.”

Just 29 per cent of the insurance executives consider themselves very knowledgeable about driverless cars and only 10 per cent have a strategic plan to deal with the impact.
 
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