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Big Data Drives The Smart Car

The data-driven car is coming -- whether you like it or not.

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Valerie Raburn
Valerie Raburn,
User Rank: Apprentice
3/25/2014 | 2:09:55 PM
Driverless Carsí impact on Auto Insurance Industry
I definitely agree that the challenge with driverless cars will be accepting them as a society, but as production costs come down, I think more people will embrace them—either purchasing them outright, or booking them on a per-use basis, the way we rent cars today— much like the widely-accepted zipcar sensation.

Aside from acceptance, another big hurdle to take into consideration is the potential impact on the insurance industry. Since the concept of "distracted driver" will cease to exist—fewer accidents and consequently lower insurance rates—DUIs, Driver's Ed, and collision insurance will become a thing of the past.

Again, we won't see this all come together for about another 15 years out, but testing is currently active and technology is gradually emerging and bits and pieces are starting to surface in the marketplace. Since about 75% of auto insurance is linked to collision and liability exposures, that revenue will steadily start to decline leaving the auto insurance industry staring at a fresh, new landscape. Insurers' primary revenue streams will shift from personal lines to commercial lines—and I predict we will see new, unconventional vendors (such as an retool their offerings to compete for the remaining 25% of the personal auto insurance business-- comprehensive coverage that takes care of things like natural disasters and theft.


-Valerie Raburn, vice president and chief innovation officer for the insurance division of Xerox.
User Rank: Ninja
3/19/2014 | 10:51:05 AM
Re: Drink Driving
That's an interesting point. That whole industry is in danger of disappearing once self-drive cars become a thing. Hell even one that can park itself would eliminate a lot of taxis, since driving into the city would be a lot easier if you didn't have to worry about finding somewhere to park, just get dropped off and leave it to find a space itself. 
Kristin Burnham
Kristin Burnham,
User Rank: Author
3/18/2014 | 8:43:36 PM
Re: Drink Driving
Agreed, though I'm not sure taxi drivers would would approve.
User Rank: Ninja
3/18/2014 | 10:48:48 AM
Drink Driving
I think one of the biggest life-savers with this tech would be the near elimination of drink driving. If people could drive somewhere, drink and then be driven home by their car, even if it was slow, that would save a lot of lives. The drivers and their potential victims. 
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