Autonomous vehicles update
What's the current scoop on autonomous cars? Are they in the pipeline? And what are the changes we're likely to see? We have a few reports. One aspect of the effects of autonomous vehicles on the insurance market is the effect on cyber insurance.
In a recent Claims Journal article, Aon Analytics says that the personal auto insurance share of global insurance premiums is 40%, and discusses how that is likely to undergo seismic change. On the other hand, some new insurance needs will surface - they anticipate that cyber insurance will grow:
While the personal auto insurance market is expected to shrink, the cyber insurance market will likely step in to provide more coverage related to auto cyber claims, he said.
Aon Benfield forecasted that by 2020 global cyber premiums could reach $10 billion – a figure that currently represents the global directors’ and officers’ liability market. The Global Council on Internet Governance estimated cybercrime could grow to $2 to 3 trillion by 2020.
In addition to the above article, check out this 6 minute podcast with Mike Stankard, Aon's automotive industry practice leader. He discusses how self-driving cars will impact the insurance industry leading to reduced auto claims and potential cyber coverage for hacking incidents.
How far off are autonomous vehicles, anyway?
Check out this Wired video of taking a ride in one of Uber's self-driving cars operating now in Pittsburgh. Right now, there is a "human engineer" in every vehicle. Plans for when the human will be deemed superfluous are still a little vague - but that is the end game.
An article on autonomous vehicles in Business Insider says:
"Tesla is aiming to have a fully driverless car ready by 2018, and Uber recently kicked off a pilot in Pittsburgh where select users can hail a ride in a self-driving car. And many other companies have plans to roll out some form of self-driving cars by 2020.
But chances are, you're more likely to see a driverless truck in practice before a self-driving car."
The article notes that it's much easier to build autonomous tech for highway driving than city maneuvering, and the high cost of the added technology makes more sense given the relative cost of big rigs vs cars. The article talks more about trucking adaptation and also includes a video of riding in a Pittsburgh Uber autonomous car.