Title : geico auto insurance is one of the largest auto insurance companies in
link : geico auto insurance is one of the largest auto insurance companies in
geico auto insurance is one of the largest auto insurance companies in
The Oracle of Omaha this month warned that artificial intelligence constituted a threat to Berkshire Hathaway's auto insurance business. Expressing at the company's annual satisfy, Berkshire CEO Warren Buffett said the use of AI in self-driving automobiles will mean fewer motorists and fewer purchasers for the company's Geico insurance makes .
Turns out Buffett may have spoken too soon. According to a new report from Accenture, the overall vehicle coverage will actually grow in the future, generating $81 billion in new receipt 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 discontinue will be more than compensated for by brand-new all types of automobile coverage, especially ones related to cybersecurity, which Accenture reads will be worth $12 billion in 2025.
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The report also points to new opportunities in commodity liability policy related to autonomous vehicles( predicted quality of $2.5 billion) and a smaller opportunity ($ 0.5 billion) in accordance with the arrangements of insuring infrastructure like mas computing that will be needed to run fleets of driverless autoes .
Here is a chart that shows how Accenture conceives the brand-new concoctions will, for a day, buoy the vehicle coverage grocery even as auctions conventional payments begin to stall and diminish :
According to John Cusano, the world head of insurance for Accenture, numerous vehicle assurance declarations in the future will be different than ones we see today. For speciman, insurers will have to pay out for occurrences such as erroneou AI concoctions 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 provoked will be those on the retail place of the business since the new jeopardies are on the commercial surface. Retail insurers will have to transform their business along the way ," he tells Fortune .
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This hints the likes of Geico will indeed face stres but that they still have time to adapt and grab a share of the commercial market. And in the short term, Cusano adds the growth of autonomous vehicle technology will actually bolster retail insurers. That's because cars now come with more expensive AI-related technology, like cameras and sensors, which represent the costs of repairing a fender bender much higher than it used to be.A final wild card in automobile policy groceries of the future is the potential entry into the business of manufacturers. Cusano answers Tesla's small attacks into the insurance business could expand. Meanwhile, Google is abusing its fleet of self-driving vehicles to amass massive troves of risk-related data, who were able to threw the search giant in a position to join other new entrants as a vehement adversary in insurance policies marketplace .Thank you for read this blog
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