Profits for Insurers are likely to drop as less accidents are expected as vehicles are going driverless.
“It was a space age experience” was how one of the early user of Google driverless cars described the encounter.
Yet according to Fehr & Peers, a consultancy, half of US traffic will be autonomous at some point between 2040 and 2050 as major manufacturers refine their technology and make it affordable for the mass market.
For the Insurance market its going to have a major impact says the senior managing director of global insurance.
Driver error this accounts for about 90 per cent of accidents cut out the humans and their errors, so the theory goes, and the need for insurance will fall.
The next generation of gadgets will have apps that will allow the car to collect information from other road users and infrastructure such as traffic light and CCTV.
It is going to challenge our existing concepts of liability,” says Mike McGavick, XL Catlin’s chief executive. “These are going to shift from being individual risks to systems risks. It is a whole new insurance pool that didn’t exist before.”