To drive or not to drive that is the question. AV scenario is like giving up your right to drive. Are you ready to do so? The conversion of autonomous vehicles (AVs) may bring about the most significant change to the automobile industry since its inception. As the way we drive and commute transforms, the amount, types and purchase of automobile insurance will be radically altered. The disruption to insurers may be profound and the change could happen faster than most expect. This paper synthesizes several months of research and analysis, discussions and brain storming sessions with industry stalwarts and it incorporates insights gained from these debates and incorporates graphs and pictorial representations from reports and manuals.

The advent of the autonomous vehicle era is upon us. Shifts of this scale won’t happen through a singular change but will instead require foundational movements across the entire driving environment.

Research shows that over a long term, with the car stock being replaced by more and more AV, the risk profiles of vehicles on the road will substantially decrease, leading to much lower total losses for carriers. And the implications of extremely safer cars will, in our view, change the insurance landscape in general and liability lines in particular. I think the readiness is all.