Are you ready for self-driving cars? Insurance companies aren’t!

driverless-car

By The Network Journal

Assuming autonomous vehicles hit the roads in the coming years, the auto industry as a whole could be in store for some massive changes. The ramifications could even trickle down to often ignored parts of the car economy like insurance companies and part suppliers. The Wall Street Journal recently reported this week that analysts expect self-driving cars could cut down on 90% of all accidents and prevent $190 billion in damages and health-related costs.

A new report by McKinsey & Co. said mass adoption of self-driving cars will begin in about 15 years, and will have massive ripple effects on the industry, the Journal said. That’s similar to findings reported last year by the RAND Corporation predicted autonomous vehicles could cause an increase in liability to automakers and a decrease from drivers, and the WSJ came to a similar conclusion. Driverless cars are also promised to have fewer accidents, which could mean fewer payouts for insurance companies. Although safer cars might not help repair shops and parts suppliers, because the change could mean less demand for repairs.

While all of these concerns are at least years away from becoming a serious issue, it’s intriguing to see corporations already starting to consider the financial implications. And kind of bizarre to think there are people worrying that they won’t make enough money because there will be fewer dangerous car accidents.

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