Deloitte Predicts Changes to Auto Insurance Due to “the Future of Mobility”
Deloitte has released a white paper analyzing trends and potential future changes in auto insurance. Two key trends addressed are the rise of autonomous vehicles and the shift from individual vehicle ownership toward the sharing economy. Members of Deloitte’s actuarial practice modeled how these trends might affect auto insurance. Deloitte projects that total auto insurance premiums could decline by up to 30% from current levels due to the reduction in frequency of loss events (due to the rise of autonomous vehicles) and the decline in the total number of vehicles (due to vehicle sharing). The types of coverage needed may also shift, as personal liability and collision coverage for drivers becomes less necessary but the need increases for commercial product liability insurance for autonomous vehicle manufacturers and shared mobility providers.
