In a Level 4 self-driving vehicle transportation system, the number of crashes, vehicle thefts and other damage will decline significantly. Other than events like hail storm damage or the stray golf ball colliding with a parked car windshield, automobile insurance appraisers will have very little to do. Some predict the industry could be 40% the size it is today to a niche market as manufactures accept responsibility for any crash.
- $112 billion of automobile liability insurance premiums paid in 2014 Source & Source
- $71 billion of automobile collision and comprehensive insurance premiums paid in 2014 Source
- 14,000 people employed as automobile insurance appraisers Source
- KPMG predicts by 2040, the insurance industry will be 40% the size it is in 2015. Source
- If automobile manufactures accept responsibility for automobile accidents (i.e. Volvo) insurance premiums may decline significantly.
How Will Driverless Cars Impact The Insurance Business? Bloomberg Business Video (20 Oct 2015) The driverless car conversation begins at 4:00
KPMG: Automobile insurance in the era of autonomous vehicles. (June 2015)
- Volvo: We will be responsible for accidents caused by our driverless cars. (October 2015)