Autonomous vehicles: is the traditional automobile insurance old-fashioned?

Autonomous vehicles: is the traditional automobile insurance old-fashioned?

Today, insurance campanies are facing new challenges further to the emergence of new technologies and the digital disruption within the insurance business : the arrival of the autonomous vehicles. In recent years, insurance companies have based their business model on three competitive advantages: Risk assessment, the knowledge of historical causal event data for loss probability through carrier portfolios. Risk pooling, the unwillingness or inability of single entities to cover their total individual risk. Risk timing, the ability to even out risks over time through risk assessment and risk pooling with time-delayed data analysis and according premium adjustments. In fact, insurance companies are now doing extensive research on individual drivers in order to price policies, as there is no comparable information exists for  autonomous vehicles. The insurance industry must redesign its current pricing structure to cover the decisions made by a machine instead of a human. The safety track record of a fleet will likely play a major role in the calculation.

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White Papers from Square Management Group.

White Papers from Square Management Group.

Initio is part of the french group Square Management together with our colleagues from others consulting cabinets, we regularly produce white papers related to various Financial topics.

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