Self-driving cars are in the news and many experimental self-driving cars are being tested every day on public roads. There are currently about 1.4 billion cars on the road. Many of those cars, and eventually all, are going to be replaced by self-driving vehicles. A recent research by Accenture and the Stevens Institute of Technology projects that 23 million fully autonomous vehicles will be traveling U.S. highways by 2035.
The advent of self-driving cars is about to create a major paradigm shift for insurance carriers. Until now, data used to adapt the pricing was mainly related to the driver, not necessarily to the vehicles itself. This is about to change. This advance will disrupt other industries. If there are fewer accidents, we will need fewer emergency rooms, hospitals, doctors, prescriptions, tow trucks, collision repair shops, and replacement automobiles. How will each of these industries respond?
AXA Strategic Ventures and AXA Lab
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