How auto risk is evolving
According to Capgemini’s World Property and Casualty Insurance Report 2023, more than 40% of the $3.8tn Auto industry will be autonomous, connected, and electric by 2030 up from 10% in 2020.
This will result in the mobility premiums for ACES (Autonomous, Connected, Electric, and Shared) vehicles growing eightfold from $0.07tn to $0.57tn between 2021 and 2030.
As ACES becomes more mainstream, the frequency of vehicular accidents will decrease but there will be an increase in severity due to increased sophistication in the kind of vehicles used.
This will lead to a shift in the overall nature of the risk to be covered. With vehicles becoming increasingly connected, the potential for cyber risks emerges.
With the increasing prevalence of advanced driver-assistance systems (ADAS) in vehicles, algorithm liabilities are coming to the fore due to potential lapses in these technologies.
This is vastly different from traditional mobility risks which were limited to physical damages and personal injuries. Some of these risks are now starting to be owned by OEMs, through comprehensive coverage programs for fleet services.
“While driver-assist…
