Consumers are becoming knowledgeable about the autonomous vehicles age, and this has consequences for the insurance industry. In a recent United Kingdom-based survey found that just 26% of polled individuals would expect for the auto insurance industry to be the same after driverless vehicles emerge. That means 74% would expect changes and a different type of insurance service.
The insurance industry will undoubtedly be rocked by the autonomous age. The vehicles will make roads safer and liability will shift onto manufacturers. Simply put, consumers may not need insurance companies and if they do, they may not need the levels of coverage they do today.
In the LexisNexis Risk Solutions by Consumer Intelligence survey, it shows that 31% think that they should be covered for a lower cost when full autonomy is achieved. The online survey asked 1,314 current insured drivers for their opinions. 8% even say that they don’t think any coverage will be needed.
Considering driverless cars are not yet available, it is a concern for the industry that nearly 10% of those asked think insurance coverage will one day be removed entirely. That number will grow as driverless vehicles become more prominent.
LexisNexis points out that the findings mean “the industry will need to consider how to remain relevant and profitable as technology evolves.”
However, the study also shows consumers still have reservations about autonomous vehicles.
Consumers point to a number of drawbacks:
- trust in the reliability of the driverless technology, 58%;
- ability to respond to behavioral cues outside of ordinary driving, 53%;
- drivers losing skills through lack of practice, 52%;
- performance in bad weather, 45%; and
- Potential impact of job losses in sectors employing drivers, 42%.
Other findings from the poll include the following:
- 16% of respondents say they believe their driverless car needs will be met by new market entrants;
- 42% report they believe drivers will be reluctant to give up control over the route, speed or how the car maneuvers;
- 39% cite a reduction in traffic accidents with a computer able to make a faster and safer reaction than a human driver; and
- 38% say they see a resulting benefit from lower insurance premiums as claims fall.