Insurers had better gird themselves for the day when cars drive themselves autonomously
Report by Insurance Society of China and Fudan University urges industry ‘to get better prepared for a changing landscape as many jobs could be replaced’
China’s vehicle insurers can expect huge disruption to their traditional business models, as the era of autonomous driving, powered by artificial intelligence (AI) continues to accelerate, a new study claims.
Three-quarters of insurers expect vehicle premiums to be included in the price tags of cars while more than 60 per cent expect a drop in premiums collected from car owners, once self-driving models becomes commonplace on our roads, said a joint report published between the Insurance Society of China and Fudan University, released on Sunday.
From damage assessment to the actual buying of insurance cover, AI is playing a far-reaching role in reshaping the country’s car insurance sector, said market veterans commenting on the findings.
“AI is casting a growing influence on insurance practitioners,” said Yao Qinghai, chairman of the Insurance Society, speaking in Shanghai. “We urge the industry to get better prepared for a changing landscape, as many jobs could be replaced.”
The report was based on the views of 47 industry experts from insurers, regulators and fintech companies. It also included the findings of surveys conducted on 242 senior managers from car insurance firms in China in the first quarter of this year, and 1,152 middle-income car owners in August 2017.
More than 60 per cent of car owners said they expect fewer accidents and less severe damage in the era of unmanned driving.
