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Study: Insurance Industry Unprepared for Self-Driving Cars
More than 80% of vehicle insurance executives mistakenly believe they have a decade to figure out how autonomous cars will impact their business, according to a new study by KPMG LLP.
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More than 80% of vehicle insurance executives mistakenly believe they have a decade to figure out how autonomous cars will impact their business, according to a new study by KPMG LLP.
The report warns that self-driving vehicles, touted for their ability to avoid crashes, will bring a "profound" disruption to the insurance industry much sooner. But it says only 10% of executives it polled have a strategic plan to deal with the issue.
Most respondents say they have done little or nothing to prepare. Many expect the rollout of truly self-driving vehicles to be slowed by regulatory concerns.
Still, executives do understand that whenever self-driving cars do take hold, they will impact underwriting, product management and claims. Most believe repairing autonomous cars will be more costly because of the technology involved in enabling cars to drive themselves.
KPMG says 19 in 20 respondents believe autonomous technology will affect liability coverage, and half mention property damage. Only 29% expect a significant impact on medical and personal injury protection.
Two in five respondents expect autonomous cars to spawn niche coverage policies and new providers. Nearly 60% believe carmakers could become major providers of vehicle insurance in the future.
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