The confluence of technology advancements, big data and Internet of Things is set to transform motor insurance for customers as well as for insurers
When Uber tested driverless cars in Pittsburgh in August 2016, it was a technological marvel that both enthralled people and caused concern at the same time. Insurers are already planning ahead for the implications of this development on the insurance business. In addition, the impact of anti-collision technology powered by the Internet of things (IoT) has got insurers concerned. The core of the motor insurance business, which is accident risk, is clearly at risk. Motor Insurance 2.0, a joint report by The Boston Consulting Group and Morgan Stanley, written in 2016, predicts that by 2040, motor insurance could decline by as much as 80% in mature markets.