The generalization of autonomous cars will reduce the volume of motor insurance premiums

According to Walter Kielholz, Chairman of the board of directors of Swiss Re, the generalization of autonomous cars is likely to lead to a sharp decline in motor insurance premiums. This sector currently generates almost half of the total volume of non-life global premiums.

Insurance coverage of autonomous cars will now be provided by the manufacturing company itself. It will be included in the purchase price of the vehicle. This change represents a shortfall in earnings for traditional insurers.

To face this challenge, insurers ought to cooperate with autonomous car manufacturers and innovative service providers such as Uber and Airbnb.

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