There is no doubt the auto insurance industry is in a state of flux. Rising repair costs, poor driving behavior and advancing auto technology has disrupted the market, and there are no signs it will change anytime soon.
Executive Summary
Concerning trends in commercial auto make it urgent for insurers to embrace technology that will decrease accidents and make insurance pricing more commensurate with evolving risk, the head of Waymo's Risk and Insurance practice told Carrier Management. Here, Tilia Gode and several other experts weigh in on the benefits and challenges ahead for auto insurers looking out at a landscape that includes, autonomous vehicles, OEMs distributing insurance and wider use of telematics data.Last year, a report by Ernst & Young indicated the disruption is expected to last a decade and will challenge legacy models as customer appetites and mobility trends evolve, and as telematics alter the auto insurance landscape.
The authors of the report, Martin Spit, principal EY-Parthenon, Ernst & Young LLP US and EY Americas Insurance Strategy and Transactions Leader, and Sulait Das, senior director, Americas Financial Services Strategy, EY-Parthenon, Ernst & Young LLP, wrote that by 2035, the changes will shrink the market by 31 percent, inviting new competition while changing how insurance is distributed, underwritten and serviced.
