“Brokers are ideally placed to retake sections of the motor market following the advent of driverless cars,” says Arun Baid. “Brokers can utilize global markets and the data on complex risks that driverless technology will create, and they can use the technology to help boost their businesses.” Excerpts:
“Brokers are ideally placed to identify and develop viable and innovative solutions to the changing risk environment and become global risk facilitation leaders. However, brokers need to reinvent themselves in this new era of risk.
Firstly, brokers should look to reinvent business and operating models to simultaneously support both cost-efficient standard risk management and a knowledge-intensive consultative interaction with clients.
Brokers should also look to expand their information gathering networks to better understand emerging technologies and improve their abilities to collect, integrate, analyze and communicate data to become more of an ‘analytical/consultative’ broker.
Most insurance carriers have been progressive in their approach towards tackling the challenge, and have been watching the development of driverless cars closely, looking at how they can adjust their business model for the future. We believe data science and predictive modelling will play a huge role in analyzing the terabytes of data generated by driverless cars to calculate an effective premium.
The advent of driverless cars will bring new risks, such as incidents caused by faulty devices, the device itself, cyber risks, and so on. Emerging new risks also create new opportunities. Insurance companies that are able to successfully build the right partner ecosystem will capitalize on the market opportunities presented by the new technologies.”
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