KPMG warns car insurers that autonomous driving will fundamentally change their business(Photo: Daimler)
If the US insurance industry experts' predictions are any guide, it will be at least 10 years before autonomous cars will become a factor in driving.
A recent survey of insurance executives carried out by consultants KPMG found that 84 pc of executives don't see any significant impact on their business until 2025.
Nearly three quarters of insurers said they felt unprepared for autonomous vehicles today. And more than half expect regulators to slow down the adoption of autonomous driving.
KPMG warned insurers that preparing for the era of autonomous driving should be a business priority. "The disruption of autonomous vehicles to the entire automotive ecosystem will be profound, and the change will happen faster than most in the insurance industry think,” said Jerry Albright, an insurance expert at KPMG.
Albright said technology is already making cars safer, which is having an effect on underwriting practices, claim frequency, the nature of car accidents and insurance premiums."
"To remain relevant in the future," he said, "insurers must evaluate their exposure and make necessary adjustments to their business models, corporate strategy, and operations.”