Auto Insurance Sector is Shrinking
Posted on Oct 23, 2015 in Insurance Developments and Trends | Comments Off on Auto Insurance Sector is Shrinking
Consulting firm KPMG released a study that claims within the next 25 years the private passenger auto insurance industry may shrink by as much as 60 percent. Reasons for the diminishing market include safer vehicles, an increase in on demand car service, and autonomous technology. By factoring in accident frequency and severity assumptions, KPMG estimates the industry will insure less than $50 billion in loss costs by 2040, which is less than half of the $125 billion it covers currently.
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