Driverless cars will dent the market for insurance

Driverless cars could lead to the end of car insurance as we know it; at least that is the conclusion of a Bank of England report on the impact that autonomous vehicles will have on insurers. The Bank estimates that the market could shrink by as much as 40 per cent by 2040 if the adoption of self-driving cars proves faster than its baseline forecast, which says the market could be a fifth smaller in just over 20 years. Cars represent the biggest line in general insurance with more than £15 billion of gross written premiums reported in 2015, meaning some insurers could face a significant loss of business as more cars become driverless.