Estimates are that there will be 23 million autonomous vehicles on US highways by 2035. We believe the switch to autonomous vehicles will generate at least $81 billion in new revenues in the US between 2020 and 2025. These revenues will be derived from cyber security, product liability for sensors, software and algorithms, and insuring the security of public infrastructure.
Insurers can convert this opportunity, but they will need to move quickly to change their business models. Carriers will need new capabilities in telematics, big data and analytics, as well as new actuarial models. After 2026, insurers will begin to see auto insurance premiums drop due to the rollout of autonomous vehicles.