Report: Insurance Market to Expand Due to Autonomous Cars
Nov. 20, 2018—The insurance market is expected to recover through new lines of coverage, according to Insurance Journal. It is also estimated that by 2025, auto insurance premiums will drop by $25 billion as a result of the adoption of driverless cars, according to a report by market analyst Accenture released last year.
New coverage lines will generate more premiums than is lost–to almost $81 billion. With fewer humans driving, and more people sharing rather than owning vehicles, auto insurance premiums will initially spike then plummet, according to the report.
There are three reasons premiums will drop, according to the report. Cars will be safer, thus accident frequency and severity will drop. There will be a shift from personal auto ownership to fleet ownership. And, finally, liability will move from drivers to manufacturers, suppliers, technology firms and fleet owners.