Chris Moore, Head of the Apollo ibott 1971 syndicate on the Lloyd’s market, explains how autonomous vehicles will drive overwhelming change in personal mobility and result in a complete overhaul of the insurance market.
According to McKinsey, autonomous driving could create revenues of US$300-400bn by 2035. Most new cars already feature some sort of autonomous technology, allowing drivers to maintain a constant speed or switch between lanes. In future, this technology will enable complete automation of vehicles – starting with industrial applications like agricultural vehicles and culminating in a full robotaxi experience.
Moore says: “At Apollo ibott 1971, we think automation is the biggest insurance opportunity for the future. It will disrupt almost every insurance vertical we see today – whether that's marine, aviation, transportation, industry, mining, construction or agriculture. It has a huge opportunity to be an increasingly prevalent part of our lives.
“There are huge upsides to automation but the piece that is missing to unlock those benefits is insurance. There's not been enough innovation or new insurance products for autonomous vehicles. That's the challenge we've set ourselves at Apollo ibott 1971: can we create an insurance product that is truly fit for purpose to enable the growth of that industry?”