The emerging mobility ecosystem will bring significant disruption – and therefore opportunity – for the insurance industry. The development of Autonomous Vehicles (AV) and Mobility as a Service (MaaS) will shift the emphasis from providing individuals with cover to providing insurance for fleet owners and AV manufacturers.

In the face of such fundamental changes, new business models will be needed if insurers are to thrive. The changes to the current insurance model that are coming are too large to simply ‘leave for later.’

In this article, we consider how the traditional components of the insurance landscape will be transformed by the emerging mobility ecosystem. In particular:

  1. Distribution – new relationships will be needed as insurance becomes an integrated B2B service
  2. Products – will become wrapped into other services and solutions to meet new requirements, such as instant cover for immediate journeys, and to meet new risks, such as the focus on security and data
  3. Underwriting – will become increasingly automated. The rise of AVs could lead traditional premiums to decline by as much as 40% by 2040 due to higher road safety
  4. Claims – accelerating customer expectations demand a quicker, simpler and more intuitive process, with cars self-diagnosing faulty and ordering replacement parts automatically
  5. Reinsurance – how will the cost of catastrophic risks, such as total outages of service and systems, be managed?

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