Autonomous Driving Technologies Mean a Big Change for Insurance Industry

There’s been a lot of talk about Autonomous Driving (AD) technologies and how they’ll change our lives as drivers, but here at Bridgewater Volvo, we’re interested in the implications of AD technologies on another industry you might have forgotten momentarily: the auto insurance industry. The NHTSA predicts that crashes will be reduced by 80 percent by 2035 as a result of AD technology, which could cut insurance claims up to 50 percent, potentially.

Currently, auto insurance accounts for 42 percent of all non-life gross premiums, and according to research by Swiss Re & HERE, AD technology have the potential to wipe $20 billion off insurance premiums globally, which would be a big change for insurance companies.

“The medium to long term impact on the insurance industry is likely to be significant. But let’s not forget the real reason for this – fewer accidents, fewer injuries, fewer fatalities. Autonomous drive technology is the single most important advance in automotive safety to be seen in recent years.” –Håkan Samuelsson, president and chief executive of Volvo

“The automotive industry cannot do this on its own. We need the government’s help. It is essential that carmakers work with the government to put in place laws and regulations that allow us to get these cars on the road as soon as possible and start saving lives.” – Håkan Samuelsson, Volvo’s chief executive

However the driving landscape changes, we have no doubt insurance companies will pivot and restructure to keep pace. If you’d like to take advantage of some of the early fruits of AD technologies like Automatic Emergency Braking, come on into our Sommerville showroom and check out the current Volvo lineup. Be sure to set up a test drive so you can be sure you’ve got the perfect vehicle for you.

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