Self-driving vehicles to impact insurance sector

Global insurance industry to be significantly affected by the autonomous vehicle revolution

 

A report produced by the US government suggests that the advancement of autonomous vehicles will help reduce the number of road collisions by 80 per cent within the next 20 years.

Driverless cars will have a significant impact on the insurance industry, according to the US government and other worldwide firms, including global reinsurer company, Swiss Reinsurance, which says that the advancement of cars with self-driving features will reduce car insurance premiums by up to $20 billion by 2020.

Self-driving features, such as automatic braking and collision warning systems, are even now proving to be a successful safety advantage in modern cars and there is evidence to suggest that these technologies have already helped prevent a number of potential accidents.

Håkan Samuelsson, chief executive at Volvo, was eager to point out that any negative affects that autonomous technology may have upon the insurance industry is counteracted by increased road safety for the world’s population.

Mr Samuelsson said: “…fewer accidents, fewer injuries, fewer fatalities… Autonomous driving cars are the single most important advance in automotive safety to be seen in recent years.”

Volvo has announced it will partnering with Thatcham Research to test its self-driving technology on UK roads in 2017, as part of the Drive Me London project.

Despite the obvious financial downturn that is facing the insurance industry, the Association of British Insurers (ABI), which consists of over 250 British insurance providers, is not attempting any resistance against the autonomous future.

According to James Dalton, a director at ABI, “there will always be a need for insurance” and the insurance industry is ready to transform itself to suit the changing auto environment.
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