Journal of Applied Finance & Banking

Influences of Autonomous Cars on the Insurance Market from the Perspectives of Insurance Companies and Auto Insurance Agencies

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  • Abstract 

    Driverless cars will dominate the road ways in the near future. Insurers often strategize to understand the technologies of autonomous cars, what they mean and the impact they may have on their business so they can then tackle that from an insurance perspective. In order to identify the changes going with autonomous cars development, the way of literature reviewing is conduct. AHP (Analytic Hierarchy Process), then, employed to evaluate the weights of the changes which go with the autonomous cars development from perspectives of insurers and agency separately. By applying Spearman Correlation Analysis, this study can tell the differences of understanding toward the changes are going with the autonomous cars development between insurers and insurance agencies. Based on the research findings, this study suggests 1. Insurance companies should accumulate their experiences in loss, utilize research data published by experts in autonomous cars, and consider autonomous car insurance products from several developed countries. 2. Insurers will need to consider various factors for underwriting and still use the existing practical model to manage underwriting, the claims process, and pricing. 3. Insurers must seek cooperation with professional institutions and insurance business departments, which could be a sizeable advantage for conventional car insurance companies.

    JEL classification numbers: M100, M310
    Keywords: Autonomous Cars; Driverless Cars; Car Insurance; Analytic Hierarchy Process