News: Consolidator Report
Auto insurance industry could see an $81 billion opportunity between 2020 and 2025 centered around cybersecurity, product liability and infrastructure.
Auto insurers are obviously worried about what reduced vehicle crashes and reduced risk could mean for premiums in the future, but an article in Property Casualty 360 indicates that research from Accenture says the switch to autonomous vehicles could present the auto insurance industry with an $81 billion opportunity between 2020 and 2025.
The opportunities are concentrated in three key areas:
- Cybersecurity – protecting against vehicle theft, unauthorized vehicle entry, and the use of “ransomware” to hold vehicles hostage until payments are made to unlock software controls.
- Product liability – insurers will write policies to cover manufacturers’ liability for communication or Internet connection failure as well as for the potential failure of software.
- Infrastructure – autonomous vehicle manufacturers and/or service providers will need to take responsibility for the infrastructure put in place to control vehicle movements and traffic flow.
To read the full article in Property Casualty 360, click here.