Avinew launches into the insurance of autonomous cars

The American insurtech company Avinew plans to develop and market motor insurance products specific to autonomous vehicles.

The startup has announced a fundraising of 5 million USD to embark on this niche. The main investors are Crosscut, American Family Ventures, Draper Frontier and RPM Ventures.

The future commercialization of self-driving cars will impose the development of a new actuarial model by insurers who will be facing:

• a fewer accidents leading to a significant decrease of insurance premiums
• a liability in case of loss shared between the car manufacturer, the software developer and the driver.

These changes, among many others, urge insurers to reinvent their insurance models and to collaborate increasinly with insurtech companies for innovation.

The insurance market of autonomous and semi-autonomous vehicles could generate revenues estimated at 81 billion USD in the United States between 2020 and 2025.