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."
Location Based Systems

Related Content

  • Connecting people and mobility
    February 3, 2012
    Stéphane Petti, Business Development Manager - Automotive, at Orange Business Services' International M2M Center, says that the ITS industry can no longer afford to ignore the telecommunications industry's role in connecting people and mobility services. To telephone companies (telcos), the Machine-to-Machine (M2M) sector is nothing new. Worldwide, they have been focusing considerable attention on M2M in all its sub-segments for several years now. It is the migration of M2M from fixed to wireless connectivi
    Read More
  • An innovation lab – not a burden
    June 27, 2018
    Travellers want to be able to book multimodal journeys easily – and to be informed of problems and alternatives as they go. Adam Roark might just be able to help, finds Ben Spencer. The global shift in transportation towards members of the public wanting access to multimodal journeys is rapidly changing how people pay and plan ahead. Buying tickets from a machine and dealing with the frustration of discovering your train is cancelled is a scenario commuters want to avoid through technology’s ability to
    Read More
  • Assessing the potential of in-vehicle enforcement systems
    December 4, 2012
    Jason Barnes considers the social and ethical ramifications of using in-vehicle safety technologies to fulfil enforcement functions. Although policy documents often imply close correlation between enforcement, compliance and safety – in part, as a counter to accusations that enforcement is rather more concerned with revenue generation – there is a noticeable reluctance among policy makers and auto manufacturers to exploit in-vehicle safety systems for enforcement applications. From a technical perspective t
    Read More
  • Consumers want in-vehicle technology but willingness to pay for it varies, says survey
    June 22, 2017
    A new global survey on consumer preferences for automotive technology finds more consumers want advanced technology in their next new vehicle. However, their willingness to pay for technology demonstrates a wide variety of viewpoints from consumers across leading global markets, says the survey from business information provider IHS Markit
    Read More

Highlighted Content