Every week The Friday Five will bring you interesting news and information from around the insurance industry.
J.D. Power Survey: 40 percent would switch car insurance for ‘autonomous discount’
Market research company J.D. Power launched a Power Pulse survey to investigate how ADAS and autonomous car technology could affect insurance premiums, and specifically, how consumers feel about the subject. While 22 percent of those surveyed say they will consider a “highly automated” vehicle for their next purchase, 40 percent of those polled would switch car insurance companies if those companies offered an “autonomous discount.” Read Kyle Hyatt’s article on CNET’s Road Show website.
Hawaii’s volcano eruptions’ impact on insurance
Wherever and whenever volcanic eruptions occur, they have the power to disrupt the lives of residents and the economic cycles of businesses. With the most recent eruption in Hawaii, which resulted in its first known injury a few weeks ago, it’s too soon to tell what the extent of losses will be. Trying to estimate when future volcanic events will happen and what their reach will be can also be challenging. While there are probabilistic catastrophe models available for risks that you can count on each year, like floods, earthquakes or hurricanes, volcanic activity doesn’t occur as frequently, which makes an underwriter’s job more difficult. Click here to read Alicja Grzadkowska’s Insurance Business Magazine article.
Insurers Tell Congress They Need Access to Data from Automated Car Systems
Property/casualty insurance carriers want future federal rules governing driverless vehicles to guarantee insurers “reasonable” access to data from cars with automated driving systems. Nathaniel Wienecke, senior vice president, federal government relations, for the Property Casualty Insurers Association of America recently submitted a letter to the House Subcommittee on Digital Commerce and Consumer Protection ahead of a hearing on self-driving vehicle regulations, writing that “the increasing automation of the driving function is likely to result in significant change for the auto insurance industry. To adapt to these changes and support innovation in transportation, insurers will need to have access to data and information regarding vehicles with automated driving systems.” Click here to read the Insurance Journal article.
Getting to the Next Level With Telematics
As with all emerging technology, it can sometimes be unclear as to when carriers should jump in, and how they can differentiate themselves in the market. Telematics, though long leveraged in personal lines, is no different. For many, the question is “whether you have to be in the market.” When it comes to telematics, insurers may be holding back due to concerns over the perceived cost, a lack of technology skillset, or potential changes in personal auto risks. Read Chuck Ruzicka’s article on the Digital Insurance website.
Insurers can strengthen their workforce with help from AI
Artificial intelligence is poised to offer insurers valuable growth opportunities for revenue and employment, according to Accenture’s new research, Insurance Future Workforce. But it remains to be seen when the insurance industry will be ready to take full advantage of the technology’s potential workplace value. The study found that insurers that invest in AI and human-machine collaboration could, over the next five years, boost their revenue 17 percent and their employment 7 percent. But, insurance companies are hardly leaping towards training their workforce to implement and collaborate with AI. Read Sharon Goldman’s Digital Insurance article “AI could help insurers bolster their workforce.”