Skip to main content

UK insurers unprepared for driverless vehicles disruption, says KPMG report

The majority of insurers are completely unprepared for the arrival of driverless vehicles, according to a new study from KPMG. Its Autonomous Vehicle Insurer report canvassed the views of senior executives from many of the UK’s largest insurers and brokers on the impact driverless vehicles will have on their business. It found that most of them believe it will take two decades for driverless vehicles to impact the automotive sector. Despite acknowledging that driverless vehicles will touch every a
July 20, 2016 Read time: 2 mins
The majority of insurers are completely unprepared for the arrival of driverless vehicles, according to a new study from 1981 KPMG.
 
Its Autonomous Vehicle Insurer report canvassed the views of senior executives from many of the UK’s largest insurers and brokers on the impact driverless vehicles will have on their business. It found that most of them believe it will take two decades for driverless vehicles to impact the automotive sector.  

Despite acknowledging that driverless vehicles will touch every area of their business model, only one in 10 insurers have developed strategic plans, while four out of 10 said they are not making strategic investments in their business model to prepare for the arrival of this new technology.

Insurers highlighted consumer acceptance and safety standards as issues that need to be resolved before the UK sees mass adoption of driverless vehicles.

However, once this technology becomes mainstream the majority of insurers (89 per cent) believe that claims frequency and severity will decrease as a result.  
 
Murray Raisbeck, insurance partner at KPMG, said: “We are surprised that many insurers have been slow to react to the current technological changes taking place in the automotive sector.  Driverless vehicle technology will radically change the insurance market and in our view disruption will happen faster than most insurers think.”   

Raisbeck added: “Insurers need to overcome their apathy towards driverless vehicles. There are clear opportunities to develop new income streams for those firms that are prepared to step out of the pack and embrace the changes taking place in the sector.    

“Firms should model a range of scenarios around the impact autonomous vehicles will have on the market and their own business.  This will help them to identify the products that will resonate with their customers and to establish how and when these products can be developed."

Related Content

  • April 21, 2016
    Silos are last century’s thinking
    After 45 years in transportation, Ken Philmus sees the need for major change in a sector currently ill-prepared to meet the challenge of funding and rapidly advancing technological change. Having worked in both the public and private sectors, Ken Philmus, currently senior vice president of transportation solutions at Xerox, appreciates both approaches, but times are changing and he believes the sector needs to change too. “I like trains, planes and automobiles but I love the concept of mobility and that’s w
  • November 21, 2013
    Autonomous vehicles, the pros and cons
    Driver interface and human factors could provide the biggest obstacles to autonomous vehicles as Jon Masters discovers.
  • March 1, 2016
    WSP/Parsons Brinckerhoff releases primer on driverless vehicles
    WSP/Parsons Brinckerhoff has released a guide for state, regional and local government officials in responding to the infrastructure and policy changes that the advent of driverless vehicles will require. The guide, Driving Towards Driverless: A Guide for Government Agencies, was researched and written by Lauren Isaac, manager of sustainable transportation at WSP/Parsons Brinckerhoff and the firm’s William Barclay. According to Isaac, driverless vehicles have the potential to change all aspects of mobility
  • January 31, 2012
    Do we need a new approach to ITS and traffic management?
    In an article which has implications for the European Electronic Toll Service, ASECAP's Kallistratos Dionelis asks whether the approach we currently take to major ITS system implementations is always the best or healthiest. I was asked recently to write a paper on the technology-oriented future of transport. To paraphrase, I started with: "The goal of European policy-makers is to establish a transport system which meets society's economic, social and environmental needs, satisfying in parallel a rising dema