End of Insurance as we know it?

Vehicle Prototype Image Banner Cropped 600px

Google recently rolled out a driverless car prototype (see video above)  that has successfully traveled more than 700,000 miles on the streets of California. We may be still further away from mass adoption; however, it spells out the future for us. In the not too distant future, the world will be driverless. As per article in LA Times article, several automakers will have fully autonomous cars on the road by 2020. By 2025, as many as 230,000 of these self-drivers could be sold each year around the world, and that number could swell to 11.8 million a decade later, according to IHS Automotive, an industry research firm.

Will this be the end of auto insurance? Who will we insure if there is no driver? May be insurance will be sold along with the car – like a “protection agreement” that we buy with appliances. That is the ultimate state of commoditization for insurance.

However, at the same time, the technology advances will offer an opportunity for personalization and product differentiation in other lines of businesses.

Read More of this article by Chief Architect and Director, Insurance Solutions