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Silicon valley decides it’s just too hard to build a car
Apple, Google cede complex mass-production to big automakers.
Tech giants Apple Inc. and Alphabet Inc.’s Google, once intent on disrupting, if not destroying, Detroit, have concluded for now that they don’t want to build cars.
The shift from personal car ownership to shared mobility is well underway
Start saying goodbye to your car. Even automakers are acknowledging there's a new future for transportation.
The shift from personal car ownership to shared driverless mobility won't come quickly. In a new report, Deloitte says personally-owned driver-driven cars will still have seven-eighths of the market in 2025. But Deloitte does see the shift happening eventually and almost completely. By 2050, "shared mobility" will account for 80% of the market, it says.
Get ready for a 40 percent cut in premiums for this P/C line
Premiums for US auto insurers could drop more than 40 percent once the use of automated vehicles is fully adopted, new data from insurance broker Aon Plc. suggests. For independent agencies, experts say the shift could mean significant changes in both commission and office structure as one of the channel’s introductory products becomes less prominent.
If you hate auto insurance, you’ll love driverless cars
Nobody likes shelling out for auto insurance. But given the greater financial burden of a car wreck, most of us simply grin and bear it, minus the grin. After all, mistakes happen and drivers are only human—for now.
But as we hurtle into the age of computer-operated, fully autonomous vehicles, car insurance as we know it is about to change—including how much we need to buy.
Computerized cars and the mobility ecosystem
Shared rides, autonomous vehicles, and shifting attitudes about individual car ownership are rapidly transforming the future of mobility.
Business leaders across industries are increasingly recognizing that the computerization of cars will greatly influence the future of mobility. At the highest level, the emergence of cars-turned-computers will enable two critical trends likely to shape the mobility ecosystem in the coming years.
Car-sharing, autonomous driving to reshape auto finance, study says
A new auto finance ecosystem is on the horizon, with the structure and timing dependent on the shift to car sharing and autonomous driving, according to a study published this month by Deloitte Consulting.
One potential outcome for dealerships is that they, not consumers, would own vehicles, which they would offer to customers on a subscription like basis.
Here’s what the driverless car means for your insurance agency
Agents and brokers who rely on automobile insurance to drive penetration into other products may need to re-evaluate their strategies as autonomous vehicles edge closer to reality, a new Deloitte report suggests.
According to the analysis–released as part of Deloitte’s ongoing “Future of Mobility” initiative–producers and direct channels remain the primary outlets for personal auto policies. Yet as autonomous features make driving safer, that market is poised to shrink, threatening agency business models as surely as it does carriers’.
Autonomous cars could lower insurance premiums by 30 percent, says Deloitte
Not another day goes by without hearing about autonomous cars or ride-sharing, apparently. These two ideas that get massive investments from corporate giants might also bring an unexpected bonus into the lives of drivers worldwide.
Along with the added safety of cars that could drive themselves and prevent accidents, even when humans are involved, this technology could also lower your insurance premiums,Automotive News reports.
As most drivers know, it is hard to get and maintain a small insurance premium. Depending on the laws in your country and your level of luck, as well as your age, you might pay a small fortune for car insurance.
The cost of insurance can reach incredible rates for those that have been involved in an accident, and things get worse by the year for young drivers and those that have recently obtained a driver’s license and bought their first vehicle.
A study published by Deloitte shows that insurance premiums will decline thanks to the introduction of semi-autonomous driving technology, as well as the launch of self-driving cars. While insurance companies might view this as a horrible danger to their business models, Deloitte believes that they have the opportunity to thrive if they adapt their operations.
Accidents are expected to decrease in frequency and severity as the years go by, but insurers will still be needed. The reason? Conventional vehicles will still exist, and people will need insurance. Early adopters of new technologies will still need insurance to drive legally on public roads. Unfortunately, for the time being, rates will not go down for anyone, but insurance costs are expected to decrease within the next five to ten years.
The described event could only take place if insurers think outside the box and accept self-driving vehicles and technologies that help drivers to avoid accidents as elements that will reduce a customer’s insurance premium.
Until this happens, Deloitte expects ride-sharing services to contribute to lower insurance costs. Instead of getting a deduction on your vehicle’s insurance premium for picking strangers up through an app on your way to work, the reduction will happen in time, as fewer accidents will happen on the roads of tomorrow.
The predicted decrease in accidents will happen because fewer cars will be on the road because millennials are expected to adopt more and more ride-sharing schemes, reducing the probability of an accident thanks to a smaller number of vehicles driving at the same time.
Autonomous vehicles, ride-sharing could push insurance premiums down 30 percent, study finds
Auto insurance premiums could decline by as much as 30 percent over the next 25 years as autonomous vehicles and sharing services become more prevalent, a study found.
The decline in premiums will be driven by three factors, a report issued this month by Deloitte said:
- Sharing services reducing the number of vehicles on the road.
- Less frequent claims because of autonomous and semiautonomous technology.
- A growth in commercial and product liability-type insurance and a decrease in personal insurance because of the rise of self-driving cars.
The technological changes threatening to undermine automakers’ traditional business models could do the same to the insurance industry, though Deloitte principal John Matley said there is plenty of opportunity for insurers to adjust and thrive in the decades ahead.
“There’s room in this for the existing players as long as they adapt,” Matley said.
Insurers can do that by bracing for the future, he said. For instance, insurers that write mostly personal lines can begin diversifying into commercial lines now, while every insurer can begin utilizing data from connected vehicles more effectively and can start building relationships with the technology companies and automakers driving changes in mobility.
“This is by no means a death knell” for insurers, Matley said. “This is an opportunity.”
Matley said the dominant mobility model is likely to shift over the next several decades from the personally owned, driver-driven model that dominates today to a world dominated by shared autonomous vehicles.
How quickly the change occurs depends on numerous factors, from regulatory approval to how soon the technology develops, Matley said, adding that even when the shared-autonomous model becomes the norm, there still will be people who would rather drive themselves.
“The change will progress slowly,” Matley said, while saying that insurers must adjust over the next five to 10 years if they are to remain profitable down the line.
A big shift is coming, and it could uber-ize entire industries
Who will rule the future economy—entrepreneurs or mega corporations? Will the economy fracture into smaller and smaller bits or centralize in a winner-take-all scenario? The answer, according to John Hagel, is it depends where you look.
Believe the hype: Vehicle safety to improve greatly with autonomous features
Despite progress in vehicle safety in the past 50 years or so,travelling on the road is still dangerous, with more than 33,000 people dying every year. Semi and fully autonomous vehicles will change that, which is why the next wave of car safety technology is so crucial.
Future of Mobility–Who are the “Super Users”?
Like many of you out there, I consider myself an Uber “super user” – although I am lucky to live within walking distance of the Deloitte Rosslyn office, depending on how the morning goes with my young twins, my morning walk often turns into a quick Uber ride across Key Bridge.
9 Ways drones are changing (and saving) our lives
When you think of drones, you probably picture a military unmanned aerial vehicle or a remote-controlled flying saucer in your local park. But, this isn’t the full picture of how this technology is (and will be) impacting our daily lives. The drone has uses related to natural disasters, the environment, public health, agriculture, commerce, infrastructure, and more. Here are some ways our lives will be better because of this technology.
Future on the move: What is the Future of Mobility?
Over the past decade in the Washington, DC area we have seen the first-hand impact of changes in mobility preferences. Across the board, people are choosing to move differently. Shared bikes and vehicles, driverless cars, drones—all are changing the future of mobility, and this has dramatic implications and opportunities for retailers and users, researchers and developers, and regulators.
Why Sidecar stalled even though it beat Uber to the starting gate
When Sidecar launched an app in 2012 that connected private vehicle drivers with people looking for a ride, Uber had been in business for two years but was only connecting riders with the for-hire, black-car drivers. The first of the true “ridesharing” companies, Sidecar labeled itself as the “innovation leader” in the industry, and it was. It continually rolled out advances that improved the service, raised the bar for quality and safety, and shaped the regulatory vision and broader perception of the industry. In the words of Sidecar co-founder and CEO Sunil Paul, “People loved it. It was safe, convenient, and affordable, and it quickly caught on.”
Automakers have breathing room on autonomous, other trends, but just a little
From the race to put autonomous vehicles on the road, to the growth in popularity of car sharing, to the battle over car-connectivity control, today’s auto industry is under siege on several fronts.
But how far and how quickly these disruptive technologies and business models take hold, and exactly who wins and who loses, remains up for debate. Whether the paradigm shift is seen as rapid and severe or occurring more slowly, with far less destruction, depends strictly on point of view.
Autonomous car future will demand tech company and automaker collaboration
That’s one of many conclusions to be drawn by a new report from Deloitte Consulting, out Thursday. In “The future of mobility: How transportation technology and social trends are creating a new business ecosystem,” the firm argues that transportation shifts over the next five to 15 years will reduce the cost of personal transportation from 97 cents to 31 cents per mile.
Wanted: Manufacturing whizzes to work on Tesla’s Model 3
Technology entrepreneur Elon Musk gave a public shout-out to the sharpest minds in manufacturing this week, calling on them to come help Tesla Motors Inc build a million all-electric cars a year by 2020.
Musk says he is "hell-bent" on making the Silicon Valley automotive upstart a manufacturing powerhouse, but his vision relies on finding veteran auto engineers to ramp up volume ten-fold in four years—a challenge even for established carmakers.