Autonomous Vehicles in Insurance - Thematic Intelligence

The primary challenges to the insurance industry relating to autonomous vehicles are largely technological and regulatory. More specifically, insurers need to understand the impact of in-car technology on collisions to accurately quantify the risk of a vehicle. They also need to understand the cost of this technology and how it is likely to change over time so that they can manage these costs. To fully understand the potential of autonomous vehicles on road safety (and ultimately insurance premiums), insurers are collaborating with autonomous vehicle manufacturers in trials across the world. Gaining access to important data on how these vehicles act and react in a range of situations is key to the risk assessment phase of the insurance value chain. These trials must continue, with more knowledge to be acquired of how vehicles will behave in non-ideal weather and road conditions.

The emergence of Level 4 and 5 autonomous vehicles will alter the way liability is determined in the motor insurance sector. Countries are updating traffic regulations to consider how self-driving vehicles should be legislated once driver fault is no longer a cause of incidents. While the owner or keeper of the vehicle will still be expected to take out an insurance policy for their vehicle, this product is likely to be more akin to product liability insurance than third-party liability insurance. Before Level 4 autonomous vehicles become mainstream, vehicles will be increasingly fitted with advanced driver assistance systems such as autonomous emergency braking and automated lane-keeping systems. Fully autonomous vehicles will be fully connected to the world around them, including infrastructure, other vehicles, and real-time event data from the internet. These connections will introduce cyber vulnerabilities not only to individual cars but potentially also to the wider vehicle population, compounding risk.

Scope

• Accenture and the Stevens Institute of Technology estimate that gross written premium (GWP) in the personal motor line will fall by 40% by 2040.
• The report also estimates that the market for product liability will increase by 14% over the same time due to the emergence of autonomous vehicles.
• The AAA estimates that contemporary advanced driver assistance systems is adding around 33% to the cost of claims in 2024.

Reasons to Buy

• Visualize the growth potential of global autonomous vehicle insurance markets and how these vehicles will transform the motor insurance sector.
• Identify key challenges and opportunities arising within the space.
• Benchmark yourself against the progress of leading insurers within this emerging sector.