Smart cars put insurers at risk, as technology furnishes car makers with data about driver’s behaviour, which could be used to price insurance policies. Manufacturers will want to offer insurance directly to owners to remove the risk of a driver being given a courtesy car from a different manufacturer when their own car is sent for repair and ending up preferring that model according to Kenny Leitch, telematics director at RSA, and the advent of driverless cars could tilt the balance further in the direction of manufacturers. 6.8 million way forward for insurers is to partner with automakers, an avenue being pursued by Toyota. Another way the industry might evolve is to offer protection against connected or driverless cars being hacked.
Smart cars put insurers at risk, as technology furnishes car makers with data about driver’s behaviour, which could be used to price insurance policies. Manufacturers will want to offer insurance directly to owners to remove the risk of a driver being given a courtesy car from a different manufacturer when their own car is sent for repair and ending up preferring that model according to Kenny Leitch, telematics director at RSA, and the advent of driverless cars could tilt the balance further in the direction of manufacturers. One way forward for insurers is to partner with automakers, an avenue being pursued by Toyota. Another way the industry might evolve is to offer protection against connected or driverless cars being hacked.