Are Autonomous Vehicles Affecting The Insurance Industry

Autonomous vehicles and telematics are emerging issues that can drastically change the way we travel. The implementation of these vehicles will not only affect the insurance industry, but may cause a chain reaction to affect other industries as well. This new technology will allow the insurance industry to adapt to customer needs and stay relevant in this new and competitive market. Nate Bunck, a Senior Treaty Underwriter, was gracious enough to provide his opinions on the matter which are summarized below.

Present capabilities of autonomous vehicles are between levels 3 and 4, which is where Tesla and Mercedes are. Level three is described as cars that can handle dynamic driving tasks, however they may still need human intervention. Level

The technology and data available in most autonomous vehicles allow insurers to use precise information the car produces to recall what actually occurred during an accident. This will replace common hearsay in courts with facts to efficiently deal with cases. In the case of an accident, there are many new questions that need to be addressed. Questions such as, who put the vehicle in autonomous mode? Was the accident a result of a malfunction of the autonomous vehicle? Was the accident between two autonomous vehicles, or between an autonomous and manually driven vehicle? When determining liability, software updates will be key. If the car isn't up to date, you could easily be sued. Therefore, the car will need to automatically update itself in order to maintain the best technology and protect the

Additionally, it may signal the reduction of streetlights and stop signs. Eventually, the cars will be able to communicate with themselves, rather than depend on street lights and signs to instruct them where to go.

Autonomous vehicles will benefit particular age groups and demographics. Older citizens who previously couldn't drive, due to health conditions or lack of driving skills can now have a personal vehicle. Additionally, anyone who has decided not to learn how to drive can also purchase an autonomous vehicle. People who live in large crowded cities can now use autonomous vehicles which will make getting around the city more efficient.

Telematics proves to be very important and useful in cars that are used today. Telematics services such as OnStar, theft recovery, geofencing, and text shut down ensure a safer more efficient drive. The only issues is that these telematics services are more effective with cars that require a driver. However, as technology begins to push the auto industry into autonomous vehicles, telematics will become less relevant due to the lack of need to improve the driver