Business leaders unprepared for driverless cars

Nine in 10 business leaders in the UK insurance and broker industries have made no provisions for driverless cars, even though the same number believe the technology will have a major impact on the frequency and severity of collisions.

A report from KPMG, The autonomous vehicle insurer: driving change in UK insurance, found that most executives are not prepared for the arrival of autonomous cars, believing they still have 20 years before it becomes a reality.

KPMG polled 18 leaders in the UK insurance and broker industries, 90% of whom have no strategies for driverless cars and no plans to manage the changeover.

Murray Raisbeck, insurance partner at KPMG, said, ‘We are surprised that many insurers have been slow to react to the current technological changes taking place in the automotive sector. Driverless vehicle technology will radically change the insurance market and in our view disruption will happen faster than most insurers think.’

Two thirds of those polled haven’t even had discussions about driverless cars.

Murray continued, ‘Insurers need to overcome their apathy towards driverless vehicles. There are clear opportunities to develop new income streams for those firms that are prepared to step out of the pack and embrace the changes taking place in the sector.

‘Firms should model a range of scenarios around the impact autonomous vehicles will have on the market and their own business. This will help them to identify the products that will resonate with their customers and to establish how and when these products can be developed.’