By
Team Writer
/ September 23, 2016
Driverless Cars should shrink insurance premiums by 20 to 40% by 2050, according to a report, even if there is only limited adoption of driverless cars. This would like be due to accident repair claims falling. The forecast assumes claim frequency would decline by 81%. This could greatly increase insurance industry volatility.
Key Takeaways:
- According to a report from insurance analyst Aon Benfield, the cost of insuring an autonomous vehicle should fall 20% below current levels and may fall by as much as 40% by 2050.
- Tesla Motors’ Elon Musk has said his vehicles will include fully autonomous capability by 2018.
- Personal motor vehicle policies account for 47% of the global insurance premium.
“The cost of insuring an autonomous vehicle should fall 20% below current levels and may fall by as much as 40% by 2050, according to a new report from insurance analyst Aon Benfield.”