Pricing Insurance for Autonomous Vehicles

Pricing Insurance for Autonomous Vehicles

Home / News | posted on 09 11 2016

With the prospect of driverless cars being commercially available by 2021, how will insurance companies influence their uptake and react to a new business model?

"This is a new world for insurers. The industry will need a whole new set of data tools to deal with this", says Michael Macauley, CEO of Quadrant Information Services, a supplier of pricing analytics to property/casualty insurance companies. Currently insurers base their rates on what they know about the driver, the driver's residential area and the car, however with autonomous vehicles the driver and their driving history would be largely irrelevant. This may lead to a situation where 'traditional' drivers are eventually priced off the road because of spiralling insurance costs.

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