June 2017
Going Hands Free: How Insurers Will Adapt to the Reality of Driverless Cars
After a startling revelation from Amanda Blanc, Axa’s chief executive, the insurance industry is waking up to the reality that the driverless revolution is just around the corner – and the industry must keep up.
Speaking to the Daily Telegraph recently, Blanc opined that babies born today may never have to take a driving test. This bold claim comes from the huge advances made by automated driving technology in recent years: it’s been estimated that automated cars will hit the roads within the next 15 years in a huge motoring shake up. But what does that mean for motor insurance providers?
Fail to Prepare, Prepare to Fail
Automated technology has been advancing at a surprising rate, and despite a few false starts, the reality is that driverless cars are definitely on their way. What this means for insurers, is that there’s pressure to prepare ahead of time – failing to do so could see huge disruption within the market, with some firms never recovering.
Speaking further on the subject, Blanc made it clear that insurers will play an integral part in making sure the transition and maintenance of a driverless car culture works to everybody’s benefit. For example, the introduction of computer-driven cars is estimated to drop accident rates in the US by 80% - and with fewer accidents, insurers need to find a new way to keep their services relevant.
Two Times the Insurance
In the UK, such matters are already being considered. As outlined in the Vehicle Technology and Aviation Bill, the Government has proposed that insurers offer car insurance based on two factors: one when a machine is driving, and one when a human is behind the steering wheel.
This will ensure that no matter who is driving, the vehicle and its owner are properly covered should an accident occur. In addition, Axa have partnered with the government to begin laying down a blueprint for the legal and insurance-based changes that will be brought about by driverless cars.
Technology That Keeps Up
One aspect of keeping up with these changes is the need for technology which evolves with the industry. This comes in the form of bespoke CRM solutions, which keep insurers compliant and ensures that all other aspects of the business are running smoothly, so that firms can focus their energies on delivering new forms of insurance instead.
By employing a solution which grows alongside the business and its industry, firms can stay ahead of the curve and implement new insurance rules with ease.
Living in the Future
All in all, Amanda Blanc’s comments have brought home the reality of the future that’s coming our way. For babies born today, 2032’s automated roads will seem like the norm, but for us it’s a brave new world which we need to adapt to and prepare for. It’s encouraging to see, then, that preparations are well underway.
With the government and top insurance firms working together to restructure the insurance industry, as well as technology available to help insurers stay ahead of the game, the wheels are well and truly in motion to help prepare for the future – and what a future it’ll be!
Are you an insurer? Stay compliant, automate processes, and keep on top of your firm’s strategy with a bespoke Lunar CRM, built to your business’ specific needs. To find out more, simply get in touch and book a free demo.