Is Autonomous Vehicle a Trend in Auto Insurance too?

Insurance CIO Outlook | Tuesday, November 12, 2019

Apart from improvising the driving experience, autonomous vehicles prove to revolutionize auto insurance processes.

FREMONT, CA: The rapid evolution of autonomous vehicles has redefined the risk profile and insurance policies in recent years. Insurance providers are utilizing the data from smart innovations like autonomous vehicles to bring necessary transformation in the existing insurance products and services. Automated vehicles change the nature of driving as integrated technology brings new safety levels and minimizes the chances of human errors. Automation has changed the driving risk factors and allowed the drivers to save up to 50% of their premiums.       

Insures are taking advantage of smart technologies to improve the accident claims processing from the starting to the finishing period of the rides. Autonomous vehicles automatically analyze the vehicle damages in accidents and help the insurers precisely analyze the claims settlements. The automated damage reporting features of the smart vehicles help insurers spot inconsistencies in the claim applications and premium assessments, allowing them to avoid paying out fraudulent claims easily.Claim Processing

Minimized manual driving and reduced rates of accidents can drop the auto insurance premiums and revolutionize the core business models of the insurance industry. The adoption of autonomous vehicles has shifted the personal auto ownership to fleet ownership and moved the liability from drivers to manufacturers, suppliers, and technology firms. Insurance businesses can identify their growth opportunities from three factors- cybersecurity, product liability, and infrastructure investment.

In the case of auto theft by hacking or failure of smart road technology, the insurers will contribute less coverage amount and save massive capital as revenue. Insurers can take revenue advantages of the situations, where autonomous vehicle manufactures take initiatives in the product liability coverage for disturbed internet connection and communication, algorithm defects, radar failure, and camera vision failure. The insurance companies can grow from the infrastructure investments on autonomous vehicles that are required to avoid  vehicle-to-vehicle and vehicle-to-infrastructure communication failure, cloud issues, satellite issues or disruptions

Enabling the insurance companies to identify numerous opportunities for business growth, an autonomous vehicle is a trend that insurers are majorly embracing. With the benefits like simplifying claims processing and cutting down the insurance premiums, autonomous vehicles promise to continue to help the auto insurance sector in the coming years.

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