The Insurer of the Future – Part 1 – Auto/Motor Insurance

Publish date:

What will the Auto/Motor Insurer of the Future look like?

In last summer’s blog series, I looked at the impact of Digital on the insurance industry’s barriers to entry. Now I’ll change the perspective and ask, in response to Digital and other pressures, “What will the Insurer of the Future look like?”

Auto/Motor Insurance

The Insurer of the Future will do very little business in the auto/motor market. Insurers that remain focused on this segment (whether personal or commercial lines) will either shrink dramatically or fail.

As I said last year, once fully driverless cars become the norm, then:

1)      Accident rates will be diminished dramatically; and

2)      There will no longer be drivers to insure.

But it’s actually even worse than that:

3)      Thefts will be minimized too, as vehicles can be disabled remotely;

4)      Fire and malicious damage cover will no longer be needed, as personal and business vehicle ownership is increasingly replaced by manufacturers supplying ‘vehicles as a service’;

5)      With the majority of vehicles still being owned by manufacturers, those manufacturers will increasingly self-insure – at best taking some reinsurance cover from the industry for catastrophic software failures.

All of the above won’t happened overnight – but the trends are already there.

Please see Part 2 – Underwriting and Pricing for further predictions.

Related Posts

insurance

Overarching macro trends are driving changes within the insurance risk landscape

Shane Cassidy
Date icon May 24, 2019

Disruptive environmental patterns, technological advancements, evolving social and...

insurance

RegTech solutions can mitigate risk while aiding regulatory compliance

Elias Ghanem
Date icon May 20, 2019

Mounting regulatory oversight and today’s technology-inspired open ecosystem are a formidable...

insurance

There’s no business like the life insurance business!

Aruna Mahesh
Date icon May 20, 2019

We’ve all heard this oft-repeated cliché – life insurance carriers are laggards when it comes...

cookies.

By continuing to navigate on this website, you accept the use of cookies.

For more information and to change the setting of cookies on your computer, please read our Privacy Policy.

Close

Close cookie information