Driverless cars will have fewer accidents, so what does that mean for insurers?

Volvo claims that autonomous cars are "the single most important advance in automotive safety to be seen in recent years". Volvo president and chief executive Håkan Samuelsson has argued that the introduction of autonomous vehicles will represent "the most important advance in automotive safety to be seen in recent years" and that the sooner driverless vehicles are on the roads, the more lives will be saved. Research by Swiss Re and Here appears to back up the claims, with figures in a newly released report suggesting that autonomous vehicle technology will reduce the number of accidents by 80 percent -- and that those accidents which still occur will be much less severe because connected cars can take avoiding action. Starting in January, autonomous vehicles will be tested on UK roads in up to three cities. Speaking at an insurance industry seminar in London, Samuelsson argued that even though the insurance sector is likely to take a financial hit from the introduction of driverless cars, it's a price very much worth paying for the improvement in road safety.