The Government’s decision to drive change in the insurance industry means its pedal to the metal for insurers.
“With new autonomous vehicles hitting the market, it’s imperative that traditional insurance providers ask themselves ‘how can we use this technology to our advantage and not get left behind?’ The answer lies in their data.
“More insurers need to appreciate the value of data and real-time insight these connected cars can provide. There is a torrent of potential data sources being streamed from technologies like Mobileye - these help customers’ vehicles stay in lane and brake in an emergency, for example, and also collect information from installed cameras to continuously update maps that self-driving cars will use. Insurers must be willing to adapt to these changes through product innovation. Traditional risk pools could reduce, but new areas of demand emerge. If an autonomous car is involved in an accident with another vehicle while the car and not the driver is in control, then who is at fault? What new risk do autonomous vehicles present? These are the key questions that insurers need to explore.
“Whether it’s through in-house innovation or partnerships with InsurTech innovators, success for insurers depends on the ability to analyse and exploit data. Analytics has the power to help incumbent car insurance companies – many of which are established and trusted brands – remain relevant to consumer.”
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