Title : ABOUT CAR INSURANCE
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ABOUT CAR INSURANCE
The Oracle of Omaha this month warned that neural networks poses a threat to Berkshire Hathaway's auto insurance business. Addressing at the company's annual fill, Berkshire CEO Warren Buffett said the use of AI in self-driving automobiles will imply fewer operators and fewer purchasers for the company's Geico insurance makes .
Turns out Buffett may have spoken too soon. According to a brand-new report from Accenture, the overall auto policy will actually grow in the future, composing $81 billion in new revenue between 2020 and 2025.
The report, published on Thursday, was explained that self-driving vehicles will lead to a big drop in individual insurance premiums. But that discontinue will be more than offset by brand-new all types of vehicle insurance, especially ones related to cybersecurity, which Accenture does will be worth $12 billion in 2025.
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The report too points to new opportunities in make indebtednes insurance related to autonomous vehicles( prophesied value of $2.5 billion) and a smaller opportunity ($ 0.5 billion) in accordance with the arrangements of insuring infrastructure like gloom computing that will be needed to run fleets of driverless vehicles .
Here is a map that shows how Accenture conceives the new commodities will, for a time, buoy the vehicle insurance market even as marketings conventional fees begin to stall and lessen :
According to John Cusano, the world head of insurance for Accenture, many vehicle guarantee alleges in the future will differ than ones we see today. For speciman, insurers will have to pay out for occurrences such as inaccurate AI produces or a hacker stealing personal data from a vehicle. Cusano adds that the new opportunities are significant but not every insurance company is similarly positioned to take advantage of them .
" Obviously, the ones who will be most objection is likely to be those on the retail place of the business since the new threats are on the commercial-grade place. Retail insurers will have to transform their business along the way ," he tells Fortune .
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This indicates the likes of Geico will indeed face pressure but that they still have time to adapt and grab a share of the business busines. And in the short term, Cusano adds the growth of autonomous vehicle technology will actually bolster retail insurers. That's because autoes now come with more expensive AI-related technology, like cameras and sensors, which make the cost of repairing a fender bender much higher than it used to be.A final wild card in automobile insurance business of the future is the potential entry into the business of makes. Cusano answers Tesla's small attacks into the insurance business could expand. Meanwhile, Google is use its fleet of self-driving a motor vehicle is amass big troves of risk-related data, who were able to positioned the search beings in a position to join other brand-new entrants as a relentless competitor in insurance policies sell .Thanks for read this article
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