Self-driving cars will shake up the insurance industry

Insurers consider selling more coverage to automakers as well as telematics data to companies

When they hit the road, self-driving cars will save time, reduce accidents and shrink the auto insurance business.

Read: Muddy road signs and hidden pedestrians fill simulated city for driverless cars

“If you could come up with anything involved in driving that cut accidents by 30 percent, 40 percent, 50 percent, that would be wonderful,” Warren Buffett said at a conference in March. “But we would not be holding a party at our insurance company.”

Read: Self-driving cars raise issues of financial and product liability

To make up lost income–which some predict could fall by 60 percent within 15 years–insurers are looking to new revenue streams that connected cars can generate. If liability is moving away from drivers and onto automakers, those companies will need more coverage. And Allstate’s CEO told Bloomberg it’s considering selling its telematics data.

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Transcontinental Media G.P.