Self-Driving Cars: Liability Shift
A report published by Fitch Ratings predicts that the use of autonomous vehicles will become more prevalent and completely transform the motor insurance sector over the long term. The report says liability will begin to shift toward manufacturers while traditional risk pools shrink, warning that insurers will be forced to diversify in search of other profit sources.
While such changes may take at least a decade to become notable and much longer for a full transition to driverless cars, they will create new opportunities for firms that can take advantage of a significant increase in connected data to price risk more accurately, according to the report. Fitch also notes that the transformation has begun, citing proposed U.K. regulations that are being based on a “single insurer model” to cover both conventional and automated cars.