Study assesses risk in a changing insurance market for driverless vehicles
Thursday, June 22, 2017 - 06:02
in Health & Medicine
In October 2015, tax giant KPMG published a report projecting a 60 percent reduction in the $135 billion auto insurance market by 2040 owing to the advent of driverless cars and the ensuing risk landscape. Despite projections, insurers will likely play a key role in supporting the safe deployment, adoption and sustainability of driverless cars. The relatively unknown nature, likelihood and extent of driverless accidents presents risk management challenges to both the automotive and insurance industries. Future motor policies may require non-traditional risk management, underwriting and actuarial approaches to account for driverless capabilities and shifting liabilities.