9th May 2018
Insurers on both sides of the Atlantic are widely expecting significant change for drivers and the car insurance market in the years to come, at least according to one newly-released survey.
In a sign of how drastically technology looks set to transform how vehicle insurance works, 53% of UK and US insurers polled by YouGov said they expected most drivers to use telematics by 2023.
One in three respondents also anticipated that all motorists would be scored on driving ability within the next 10 years, as reported by TheActuary, the magazine of the Institute & Faculty of Actuaries.
Meanwhile, a quarter believed that the coming five years would see the arrival of fully autonomous vehicles. 48% voiced the opinion that most cars would be hybrid by that time, while 39% tipped electric to be the means by which the majority of cars would be powered.
The research was commissioned by telematics company The Floow, with CEO Aldo Monteforte commenting: “Insurance leaders are correct to predict that telematics will be a game changer in the field of insurance.
“We are entering the age where we can precisely quantify the risk of every driver, redefine insurance, and help them become safer on the roads.”
Telematics and autonomous cars aside, the insurance industry is expected to be most impacted in the years ahead by mobility and the number of car owners.
29% of the quizzed insurance bosses believed that outright car ownership would be superseded by car-sharing over the next decade, amid expectations of the emergence of usage-based insurance.
The study also found that one in four of those surveyed expected greater incentives for people to spend less time driving, as well as a trend of more non-financial brands offering insurance services.
However, UK and US insurers also differed in their predictions. British respondents were more likely to believe that electric and hybrid vehicles would increase in number over the coming decade, while their American counterparts’ expectations placed much greater emphasis on autonomous vehicles and car-sharing.
Monteforte added: “Our relationship with cars – how we drive, if we drive, whether we own, co-own or rent them – is already changing, and with this will come changes in the insurance sector.
“The extraordinary rate of change is being driven by demand for uniquely tailored policies to ensure drivers are paying a fair amount for the way they drive.
“On a wider scale, the technology is there to encourage us to drive better and make our roads safer, benefiting everyone.”
It may be difficult to know in which direction the car insurance market will head next, but if you’re in need of the most suitable and best-priced cover for the here-and-now, you can’t do better than getting in touch with the Call Wiser team.
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