Technology and data have allowed insurers to be much more predictive and accurate when it comes to calculating risk and measuring trends. Usually this has to do with analyzing the behavior of people, but in a world where automation continues to play a bigger role in everyday life, even more questions have to be answered.
Take, for example, the rise of self-driving vehicles. Though on the periphery today, autonomous vehicles will only continue to rise in number on our roads and freeways. While they have the potential to make driving safer by eliminating the most significant factor in accidents — human error — they still have other risks to consider.
In an interesting interview with Digital Insurance, Deeksha Joshi, Managing Director of Corporate Strategy & Research at Liberty Mutual discussed some of these, including the threat of cyberattacks. Joshi argues that risk models and products for emerging fleets will evolve and adapt to changing consumer needs, data availability, and technological advancements. Insurers probably didn’t think ten years ago that one day they’d have to come up with a risk model for insuring driverless cars, but the steady march of technology rolls on.