Tagged: motor insurance

A paradigm shift for motor insurance, but which one?

"Volvo will accept full liability whenever one of our cars is in autonomous mode." Hakan Samuelsson - Volvo Car Group President and CEO

This is a strong statement on a topic for which Volvo is seen as a world leader: safety, with a 360-degrees approach.

But the most interesting part is that it implies a wide range of consequences – a real paradigm shift – for motor insurance: is the whole business model shifting away from retail towards B2B or will there rather be a mixed model, with a B2B component (transparent for the driver) for the kilometers driven autonomously by the car, complemented by a retail component for “traditional” driving?

Whatever the case, the way tariffs are calculated is going to change as well: will they depend on make and model, that would actually mean on the quality of software provided by different manufacturers on different models?

In order to differentiate themselves from competitors, will some manufacturers include different “driving style” options to be chosen by the passenger, such as an “emergency” button, commanding the car to get to a place as soon as possible and featuring a higher tolerance for risks?

In consideration of the new intrinsic nature of the reasons why an accident occurs, driven by fixed rules set by software developers – and not anymore by drivers’ mistakes – is the role of underwriters and claims inspectors going to change and include strong expertise on software design and business analysis?

And, in ultimate analysis – and concerning not only driverless cars but rather all the ways in which AI is going to play a relevant role in our lives: is software development going to embrace so many moral and ethic challenges, that an oath – such as the one doctors take – will be required for the profession?