The combined effect of big data, artificial intelligence and machine learning has potentially huge implications for the future of motor insurance. Hardly a week goes by without research or an industry spokesperson highlighting the demise of traditional practices and the rise of insurtech.
For example Insurance Times recently quoted AXA’s UK technical director David Williams’ suggestion that as much as 80 per cent of today’s motor insurance market will have disappeared by 2040. That’s not a death knell for motor insurers. Instead the market is likely to change, with insurance being defined and transacted differently. Insurers have time to react, and there is huge potential for technology to benefit the motor market.
The advent of driverless cars, continued insurtech innovation, the impact of the sharing economy, the growth of consumer power and the expectations of millennials – these are some of the factors that will increasingly shape insurance products and the relationship between insurer and insured.