Some important questions and answers raised by Nigel Walsh. Let me add two other thoughts:-
- The Uber effect in which vehicle ownership will likely drop as travellers find it convenient and cheaper to get an Uber driver in the time it would take to get the car out of the garage. That means less drivers policies to be sold
- The big manufacturers are all investing in autonomous cars and there's no reason they would not add insurance by the trip as Nigel suggests
- Ford & GM invest in IoT & autonomous cars
I think the change with autonomous vehicles is not only to move from personal insurance to product liability (or a mix with a flex of product and personal liability, e.g. the manufacturer will provide the base layer of cover, but after that you have the flex options to add extras). To me, the issue is more about distribution of the product. I envisage that next you will buy insurance to cover a journey, instead of buying insurance once a year through a price comparison/aggregator site. Equally, the big auto insurance carriers Nick mentions will need to look for new sources of income and value-added services, be it breakdown or otherwise to drive revenue and profit.