Auto Insurance Industry Could Shrink 70% by 2050
Graphic via KPMG.
Autonomous vehicle technology, on-demand transportation and a shift of liability to manufacturers could cause a contraction in the auto insurance sector by 71% by 2050, according to a KPMG research report.
If the trend holds, it would cause a loss of $137 billion in revenue to insurance providers. The report updates 2015 research from the firm that estimated a 60$ decline in business by 2040.
The pace of change has accelerated, which is projected to cause even greater declines, according to the consulting firm.
Even though suurveys have found that most Americans of all ages are fearfull about self-driving cars, KPMG projects wide acceptance of autonomous driving.
Read the full report here.