Report released on how autonomous vehicles will impact insurance premiums

Aon Benfield released its annual Global Insurance Market Opportunities (GIMO) report, which discusses the significant reduction of motor premiums as autonomous vehicles make their way onto North American roads.

The report, Riding the Innovation Wave, reveals that if autonomous vehicle technology is adopted at even a moderate pace, US motor pure premiums could decrease by 20 percent by the year 2035 compared to their 2015 levels – and potentially by more than 40 percent by the time that autonomous vehicles reach full adoption in 2050.

“Adoption of autonomous vehicles will of course be affected by many variables such as regulatory challenges, cost to the consumer, safety, vehicle ownership preferences, and the technology itself,” said Paul Mang, CEO of Aon Analytics. “However, we as an industry need to act quickly to ensure that we have the products available to align to the new paradigm; if we fail to do so, we only invite disruption.”

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