Insight

The chaotic middle: The autonomous vehicle and disruption in automobile insurance

The core business models for traditional automobile insurance carriers may be under threat of obsolescence, with automobile manufacturers potentially becoming a potent alternative to cover driving risk.

The effects of autonomous vehicle technology on insurance are likely broader and deeper than outlined in our first paper, Marketplace of change: Automobile insurance in the era of autonomous vehicles, released a little over 18 months ago. KPMG now believes that the core business models for traditional automobile insurance carriers may be under threat of obsolescence, with automobile manufacturers potentially becoming a viable alternative to cover driving risk. We are entering a period of radical change-the "chaotic middle" of a transformation-that promises to reshape the insurance landscape.