Note from the CEO: Driverless cars pose a double whammy for insurers. First, as this article describes, safer cars will cause premiums to fall (like lower earnings) and, second, what is not fully thought out is what happens when two driverless cars have an accident and there is a casualty? Who is at fault? Who does the insurer insure? The manufacturer? You can see by our few questions there are many unanswered.
“The insurance industry has a $160 billion blind spot: the driverless car.
Car insurers last year hauled in $200 billion of premiums, about a third of all premiums collected by the property-casualty industry. But as much as 80% of the intake could evaporate in coming decades, say some consultants, assuming crucial breakthroughs in driverless technology make driving safer and propel big changes in car ownership.”
Read Full Article at WSJ.com (story may only be available by paid subscription)