Without causing human accidents, 90% of the risks are removed. Insurance companies are floundering in preparation.
Dan Betty, an adventurous businessman and businessman in Southern California, was thinking of buying the Tesla X model a few years ago – until he called his insurance company and discovered how high the premium was.
“They took me $ 10,000 a year,” recalls Pitt.
For all concerns about accidents involving driverless cars, including Tesla problems with Autopilot limited self-development, it is easy to forget one of the supposed virtues of self-driving cars: it will make roads safer. The advanced range of radar, radar and cameras is expected to be more skillful in detecting problems than our eyes and ears. Never drink computers, check wool or sleep on the steering wheel.
Peate, 40, started a company called Hixme, a group health insurance company. Now, he wanted to launch a company specializing in auto insurance that uses automatic driving methods (and in the end, fully independent cars). His experience with the insurance company for his old non-driver car proved his need only.
When insurers and insurance insurers say the price of insurance is a new type of risk, Beate said they are getting more because they do not have enough data. With very few Xs on the road, its safety record was, at best, opaque. But Tesla Inc. And other automakers gather information on their vehicle operations to improve automation. Peate said he realized “we can get large amounts of data across entire fleets and be able to write without having to wait for years of data” of accidents after they occur.
It also enables the insurance company to reduce premiums for drivers as they use independent driving.
On January 30, Peate announced the creation of Avinew, with a $ 5 million seed fund led by Crosscut Ventures in Los Angeles. His insurance product will monitor drivers’ use of self-operated features on cars manufactured by companies such as Tesla, Nissan, Ford and Cadillac, and determine discounts based on how this feature is used. Paynet has agreements with most manufacturers and connects the rest, allowing it to access the driving data as soon as the customer gives it permission, Bayat said.
Deloitte, in the 2019 insurance forecast report, saw this. “The rise of communication … has resulted in the generation of a huge amount of real-time data and the transformation of the insured’s relationship with policyholders from static and dynamic to interactive.” Avignon said he expected to write policies later this year in selected countries.
The transition to a more existential crisis for the auto insurance industry is in the billions of dollars. If you are not driving anyone, why do we need insurance on cars? Premiums – and company revenue – depend on the likelihood that the driver will be in an accident, in addition to the actual collision rates. With more than 90 percent of accidents caused by human error, taking the driver out of the equation would mean big changes for insurance companies.
“This is in every strategic conversation,” said Michelle Krause, managing director of Accenture’s insurance services group. Major carriers focus “largely on understanding the technology behind [automation] and opportunities.”
The Crowes Group, with research from the Stevens Institute of Technology in New Jersey, published a report in 2017 predicting problems for insurance companies as automation spread. Insurance premiums could fall by 12.5 per cent of the total market by 2035. The researchers also found that while the new lines of insurance products focusing on independent cars would compensate for the loss, the shrinking premiums would ultimately outweigh the gains.
The good news for the industry is that it has time. Stevens estimates that by 2035 there will be only 23 million independent cars on American roads, less than 10 percent of the total day. So far, the technology required for independent features is too expensive, which means that bonuses will rise initially as more cars are displayed than many dealers.
With automation reaching levels 4 and 5 – a completely independent capacity with the option of a human driver to lead, without complete independence without human intervention, insurance will change dramatically.
“Insurance is expected to be a much lower industry in the face of future consumers,” Keith said.
That’s because the driver will not be the risky part. “It’s possible that the responsibility will be transferred from the individual to the manufacturer and software licensees who drive the car,” says Rodney Parker, assistant professor of operations at Indiana University. Accenture report agreed. This means that insurers will sell more policies to businesses and less to drivers: car manufacturers, telecom systems suppliers, software and sensors will be on the hook for their product failures, rather than drivers who pay for non-scrutiny.