News

Insurance Companies Likely to Partner with OEMs for Autonomous Vehicles

Order Reprints
Insurance Companies Likely to Partner with OEMs for Autonomous Vehicles

July 26, 2017—With the rapid advancement of autonomous vehicles, traditional personal auto insurance has the potential to be severely disrupted by new competition and shifts to other types of insurance coverage, meaning they are likely to form partnerships with OEMs.

Autonomous vehicle technology could shrink the auto insurance sector by 71 percent—or $137 billion—by 2050, according to a report from KPMG. As such, the core business model for traditional auto insurance carriers may be under threat of obsolescence, and manufacturers have the potential to be a viable alternative to cover driving risk.

While this reality will be an incredible upheaval to the traditional business model for insurance companies, there are opportunities for partnerships with OEMs, Jerry Albright, an author of the KPMG report. He said there will be a proliferation for partnerships just OEMs and insurers can't afford to stick it out alone, creating potential for relationships and strategic partnerships between the two parties.

Automakers will assume more of the driving risk and associated liability, the report stated, and have new opportunities to provide insurance to car buyers—taking marketshare away from traditional insurers.

Photo courtesy of Pixabay.

Recommended Products

2013 FenderBender KPI Survey: Complete Report

2015 FenderBender How I Work Survey: Complete Report

2013 How I Work Survey: Complete Report

Related Articles

Report: Autonomous Vehicles Could Shrink Auto Insurance Sector By 71 Percent

OEM Collision Repair Technology Summit Talks ADAS, Autonomous Vehicles

Delphi, Innoviz Partner for LiDAR Solutions for Autonomous Vehicles

You must login or register in order to post a comment.