A new report from Moody’s Investors Service says that accident avoidance features in vehicles, such as automatic braking, adaptive cruise control, and lane departure prevention will lead to lower accident frequency in the next five-to-ten years, a benefit for auto insurers. Longer term, however, self-driving cars could translate into significantly lower premiums and profits for insurers as the number of accidents declines dramatically.
The report noted that while self-driving cars will likely force auto insurers to rethink their business models, widespread adoption of this technology is decades away, allowing insurers plenty of time to adapt. In the near term, accident
Subscribers need to be logged in to see rest of this article. Please Login to access. If you're not a subscriber, click here for information on our satisfaction guaranteed subscription options.