A.M. BestTV: Driverless Cars Set to Remake Automobile Coverage

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FOR IMMEDIATE RELEASE

OLDWICK - JULY 20, 2016 02:53 PM (EDT)
This ^A.M.BestTV episode highlights a new survey from Munich Reinsurance Company, which reports that many insurers are unprepared for the changes autonomous vehicles (AV) will bring to the automobile insurance sector, including expected changes in liability and claim frequency. Click on http://www.ambest.com/v.asp?v=autonomous716 to view the entire program.

“The majority of risk managers are not doing anything to prepare their organizations for the coming adoption of AV technology,” said Michael Scrudato, senior vice president, strategic innovation leader, Munich Re America.

Nevertheless, risk managers should be looking at the risk AVs will likely create for their organizations, as well as considering what the emerging risks might be for their fleets.

“Today, risk managers consider cyber risk to be their top concern. However, while cyber and automobile risks are separate buys today, as vehicles become more and more connected and automated, there is the potential for cyber exposure to be linked with automobile exposure,” said Scrudato.

Scrudato also sees potential shifts in liabilities and premiums; consequently, “the industry should be proactive in seeking out new solutions to the new technology that is coming forward, instead of waiting and reacting to it.”

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