Autonomous Industry Growth Could Give Insurers Hope Says Shop Insurance Canada

December 14, 2016 – The autonomous vehicle market is widely predicted to disrupt the auto insurance industry unless insurance companies can find a way to adopt to the challenges ahead. If providers can find solutions to be a part of the autonomous surge then the results could be hugely lucrative. Shop Insurance Canada says a recent report about the growing autonomous industry should highlight why insurers must adapt and be a part of the growth.

An autonomous market related to mobility and connectivity will develop over next 14 years, suggests KPMG. Indeed, a new “mobility services market” will grow to be worth well over US$1 trillion globally by 2030 says the research company.

The change in autonomous vehicles will be driven by deep learning, which will help develop an automotive industry built on mobility and connectivity. Deep learning is artificial intelligence at an advanced level, machine learning abilities make computerized decision-making more intuitive conclusions from queries and tasks.

KPMG released a report titled I see. I think. I drive. (I learn), and in the paper the tax and audit company says deep learning will have a profound impact on the way car manufacturers will do business:

“Deep learning is accelerating autonomy faster than anyone could’ve imagined, and it has far-reaching implications for the industry and societal mobility as a whole,” said Gary Silberg, KPMG’s national automotive leader. “If a car can’t learn, then it’s still reliant on millions and millions of lines of code, with such complexity and ambiguity, that full autonomy wouldn’t be achievable for many years to come.”

In the statement, Silberg adds that “new era in automotive product development and manufacturing – one that emphasizes the car’s nervous system, which includes computer ‘brain,’ sensors, controls, driver interaction and data storage even more than the powertrain. This is an enormous shift in organizational structure, talent acquisition and operating model for most car manufacturers.”

The report suggests the auto industry is at a “critical juncture” where for the first time in over a century, the way people use cars is changing. Autonomous vehicles will become a major market player in the coming years and insurance companies will have to adapt to the changing industry.

Carmakers will also face challenges, namely from tech companies who will muscle in on the autonomous market. KPMG says car manufacturers and tech giants will “face off in a war for specialized talent. People with deep learning expertise are in short supply and the pool of experts among those specialists is even smaller. This makes it difficult for traditional automakers to compete with tech leaders. In addition, universities cannot keep pace with the autonomous driving market demands for talent.”

Challenge for Insurance Providers
Insurance industry expert Shop Insurance Canada says that the advent of the autonomous industry presents insurance companies with a number of challenges. If insurers can overcome these difficulties then they will be a part of an industry that will grow exponentially over the next decade. Finding a compromise in the market would be lucrative for companies, Shop Insurance points out:

“The challenges for insurers are clear. Companies must find a way to be a part of an industry that may not necessarily need auto insurance in the traditional sense. It has been well documented that liability on consumers may disappear and the car insurance market will decrease over the coming decades. However, there is no doubt that action now can give insurers a position in an autonomous industry that could be financially important in the future.”

About Shop Insurance Canada
Shop Insurance Canada is a Toronto based company that specializes in delivering the best auto insurance products to customers around Ontario and Canada. The online quoting tool uses an engine that is easy to use and accurate enough to deliver the best auto insurance quotes from over 25 of Canada’s leading providers. Shop Insurance Canada also offers expert advice on the auto insurance industry, as well as guides and news to help customers find the best deal possible.

Shop Insurance Canada works hard to bring all the latest insurance news to customers. We believe that understanding the industry starts with knowing what is happening day to day. Our customers and readers are hugely important to us, and we want them to get the best deals by being involved in the industry. If you have any interesting insurance topics or stories, let us know and we will be happy to look into it and write it up.

Perhaps you have a funny story about your premium evaluations, or maybe a genuine worry about the state of insurance in Canada. Shop Insurance Canada wants your voice and story to be heard, so get in touch with us via our official contact page.

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Luke Jones
Shop Insurance Canada
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https://www.shopinsurancecanada.ca

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