What role for auto insurance in a driverless world?
With no humans to blame and fewer accidents in a driverless world, the system for insuring vehicles will change. The insurance companies have taken full notice:
Underwriting and claims handling will need to adapt to the future. New rating methodologies will need to be developed as historic big data on claims and trends become “increasingly redundant.”
There is clearly a role for insurance companies to protect passengers and vehicles, but the customer base and business model are about to change. Insuring millions of teacher-owned Toyota Corollas is to become insuring millions of Google*-owned and operated AVs. One looming issue is who will control driving data:
Insurers will need “easy access” to data from autonomous vehicles, particularly in the event of an incident or loss. But in a post-GDPR world, decisions will need to be made about the storage and ownership of data from autonomous vehicles, and how insurers can access and use this information.
I suspect insurance companies will look to governments to guarantee them access to the data. Indeed, the UK just passed the Automated and Electric Vehicles Act of 2018.
* Or Tesla, or GM, or Ford, or etc, etc, etc