Title : 21st Century Insurance
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21st Century Insurance
The Oracle of Omaha this month warned that artificial intelligence poses a threat to Berkshire Hathaway's auto insurance business. Addressing at the company's annual gather, Berkshire CEO Warren Buffett said the use of AI in self-driving autoes will mean fewer drivers and fewer customers for the company's Geico insurance makes .
Turns out Buffett may have spoken too soon. According to a new report from Accenture, the overall automobile insurance will actually grow in the future, forming $81 billion in new revenue between 2020 and 2025.
The report, published under Thursday, was explained that self-driving cars will lead to a big drop in individual insurance premiums. But that drop will be more than offset by new categories of gondola guarantee, especially ones related to cybersecurity, which Accenture tells will be worth $12 billion in 2025.
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The report also points to new opportunities in concoction liability guarantee related to autonomous vehicles( foreseen price of $2.5 billion) and a smaller opportunity ($ 0.5 billion) in accordance with the arrangements of insuring infrastructure like gloom estimating that will be needed to run fleets of driverless autoes .
Here is a graph that shows how Accenture believes the new commodities will, for a duration, buoy the automobile assurance busines even as auctions conventional fees begin to stop and deteriorate :
According to John Cusano, the global head of insurance for Accenture, many automobile insurance argues in the future will be different than ones we see today. For speciman, insurers will have to pay out for happens such as flawed AI commodities or a hacker embezzling personal data from a vehicle. Cusano adds that the new opportunities are significant but not every insurance company is evenly positioned to take advantage of them .
" Obviously, the ones who will be most invited is likely to be those on the retail feature of the business since the brand-new jeopardies are on the business feature. Retail insurers will have to transform their business along the way ," he tells Fortune .
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This proposes the likes of Geico will indeed face pressure but that they still have time to adapt and grab a share of the commercial busines. And in the short term, Cusano remarks the growth of autonomous vehicle engineering will actually bolster retail insurers. That's because automobiles now come with more expensive AI-related technology, like cameras and sensors, which impel the cost of restoring a fender bender much higher than it used to be.A final wild card in auto guarantee groceries of the future is the potential entry into the business of makes. Cusano supposes Tesla's small attacks into the insurance groceries could expand. Meanwhile, Google is exerting its fleet of self-driving a motor vehicle is amass gigantic troves of risk-related data, which could positioned the search beings in a position to join other brand-new entrants as a relentless adversary in the insurance grocery .Thank you for read this news
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