The future of auto insurance
Motor insurance stands on the cusp of momentous change. It is no exaggeration to say that by the end of the next decade it will be a fundamentally different industry from the one that has barely changed over recent generations.
The 1980s revolution in direct insurance and the more recent arrival of comparison websites may have reshaped the distribution model but they were merely different ways of selling the same product. Now, the product is changing because the vehicles themselves and the attitudes towards ownership are changing at an unprecedented pace.
The role of insurers will be transformed, says James Rakow, insurance partner at Deloitte. “Insurers will embrace the safety agenda through the advent of semi-autonomous vehicles by moving outside the pure underwriting role to a risk-management and risk-mitigation role. They will also have to develop a multi-modal way of looking after people’s insurance needs, because they will also need to focus on the carless driver as much as the driverless car.”