#TECHVISION2020 Lessons from the self-driving car Auto insurers are perhaps the most advanced in their Many insurers anticipate that there will be fewer thinking about robots—they have spent years evaluating, and accidents, lower claims and less fraud in a world of preparing for, the potential impact of autonomous vehicles widespread autonomous vehicles because human error on their industry. They foresee that auto insurance could, by will be removed from the equation and insurers will have 2025, look very different to today due to the rise of the self- better data to assess risk and detect fraud. The experience driving car. And many of the same trends may apply to the in connected cars to date indicates that more expensive wider robotics market. vehicle repairs could offset the benefits of fewer accidents and claims in the short term. The longer-term downside might be lower premium income and perhaps even a Nearly two-thirds (64 percent) of insurance respondents reduced need for insurance products and services. to last year’s Tech Vision survey agreed that vehicle manufacturers will—via product liability coverage—assume a bigger share of the auto insurance market. This is already happening. Tesla’s insurance division, for example, professes to offer premiums 20 percent to 30 percent lower than rivals 47 on Tesla vehicles for eligible customers. It would not be surprising if major robot makers followed Tesla’s lead. Technology Vision for Insurance 2020 | We, the Post-Digital People 45