Work in the insurance industry? Ever wonder what life would be like insuring the owners of autonomous vehicles?
The Wall Street Journal reports insurers Cincinnati Financial, Mercury General and Travelers, along with supplier LKQ, are warning investors that autonomous technology would one day come to disrupt the way insurers and suppliers do business.
How? For insurers, decreased demand for certain policies, changes in policy marketing, pricing and underwriting, and predicting risk when the driver no longer drives. For suppliers, declines in accident rates and repairs from those that do occur, leading to less demand for parts overall.
Barclays insurance analyst Jay Gelb, however, says insurers would have plenty of time to prepare for the autonomous future, especially since such vehicles are more complex; thus, requiring more money to fix them. He adds that it was “hard to see how a product that has been in place for more than a century is just going to go away” because a different breed of vehicle is just now entering the development phase.
The post Insurers, Suppliers Face Potential Disruption From Autonomous Vehicles appeared first on The Truth About Cars.
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