The driverless car is going eventually to cause great concern for the insurance industry.
A massive drop in premiums:
During 2015 car insurers collected $200 billion in premiums. Consultants fear a decrease of 80% in the future. This conclusion is based upon the basis that as driverless car technology become safer, this will thus cause changes in car ownership.
Risk factors will change. as a result, who is responsible when a driverless car collides with a driven car? Would insurance companies therefore have to extend existing policies or create new types of policies?
New Generation cars:
Consequently, each new generation vehicle is manufactured with more automated features than before. High-end cars and some mid-priced vehicles offer blind-spot monitoring. They also offer forward-collision warnings as well as lane-departure warnings. Crash avoidance technology will therefore become standard equipment.
Change is coming:
U. S. Insurance executives as a result are spending millions with car manufacturers. They are testing the technology themselves. Actuaries who decide on premium risks and rates are puzzled. Will there be fewer accidents? Who will be the insured? The drivers or computer code?
A Chicago insurer founded a company called Arity. They employ more than 200 data scientists. These tech experts perform research on new products and services. The experts therefore analyse billions of miles of driving data. They provide insights and scores. These help amongst other things such as deciding upon risk and furthermore change driver safety, connectivity and value.
The future of the driverless car:
Actuaries may thus have to recalculate details about people with issues such as: –
How often cars are hacked;
Which areas in the country have better satellite imagery;
Identify the safety differences across driverless cars, from Google to Tesla;
Be aware of the varying quality of safety features of all driverless cars.
Google’s self-driving cars have racked up more than 1.5 million miles of testing. Furthermore Tesla says Autopilot has topped 130 million miles.
States and localities are already taking action. They accommodate driverless cars and connected vehicles. These cars rely on cameras, radar and laser-mapping tools . This helps them to determine their positions. They have to communicate with stop lights and pavement sensors. It has been reported that authorities are taking this new technology very seriously.