“Smart” cars to turn into losses for British insurers

Moscow. January 22. Development of vehicles that are able to do on the roads without drivers, may lead to a reduction of the car insurance market in the UK and to force insurers to diversify their business, writes the Financial Times citing a report by Standard & Poor’s.

“Technical innovations will not immediately appear on the market, but when it does, we expect the General trend to continue to reduce the number of accidents,” notes the analyst of Agency Robert Grinstead.

It is noted that for the past 15 years, the total number of kilometers travelled by motorists in the country, virtually unchanged, whereas the number of accidents with fatalities or serious injuries declined over the period by almost 50%.

Evaluation KPMG, by the year 2040, the auto insurance market in the UK could be reduced by 40% compared with the current volume.

According to forecasts by research centre Thatcham, a fully Autonomous car without steering wheel and pedals, will appear on UK roads not earlier than in 20 years. However, before that cars will learn to perform many actions without drivers.

For example, nearly three-quarters of the cars off the conveyor in the UK last year, already had the auto brake in case of emergency. According to the head of Thatcham’s Peter Shaw, this feature allows you to reduce injuries among drivers by 40%.

Meanwhile, for insurers many of the issues associated with driverless cars, remain open, and the main question is, who will be responsible in the event of an accident without a driver. British insurance companies have already established a working group to discuss with the authorities this and other issues. The group is chaired by the head of underwriting Department at AXA Group David Williams.