In the first blog in this series, we discussed new models from Accenture and Stevens Institute of Technology suggesting that the shift to autonomous vehicles could represent a major opportunity for auto insurers, particularly in the period from 2020 to 2035 when AVs will generate as much as $81 billion in new US revenues.

In our analysis, we see these revenues coming from three main sources:


For insurers, three key areas of opportunity in insuring autonomous vehicles will be in cyber insurance, product liability and infrastructure.

1)     Cyber Security.  The opportunities here include protecting against vehicle theft, unauthorized vehicle entry, and the use of “ransomware” to hold vehicles hostage.  Insurers will also be writing policies to protect against criminal or terrorist hijacking of vehicle controls through hijacking.  Insurers will also offer protection against identity theft, privacy invasion and the theft or misuse of personal information obtained through connected automobiles.

2)     Product Liability.  Insurers will write policies to cover manufacturers’ liability for communication or Internet connection failure as well as for the potential failure of software, including software bugs, memory overflow, and algorithm defects.  Insurers will also cover hardware failure such as sensory circuit failure, camera vision loss, and radar and lidar (light detection and ranging) failure.

3)     Infrastructure.  AV manufacturers and/or service providers will need to shoulder responsibility for the infrastructure put in place to control vehicle movements and traffic flow.  This will include cloud server systems – which can malfunction, become overloaded or suffer interruptions from outside factors – as well as the failure of external sensors and signals and communication problems originating at the system level.

In our next blog, we will look at where the AV revolution stands right now and at some of the benefits to being an early mover.

Register here to download Insuring Autonomous Vehicles:  An $81 Billion Opportunity between Now and 2025


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