trending Market Intelligence /marketintelligence/en/news-insights/trending/C_UxlSiviuB1X6sGNW1Ueg2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Moody's: Driverless cars to dent insurers' profitability in long term

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Part Two IFRS 9 Blog Series: The Need to Upgrade Analytical Tools

2018 US Property Casualty Insurance Market Report


Fintech Funding Flows To Insurtech In February

Moody's: Driverless cars to dent insurers' profitability in long term

Moody's said March 29 that accident avoidance technologiesapplied in cars could boost insurers' profits in the medium term.

The agency expects that widespread use of the technology willcause a decline in the number of accidents because of features such asautomatic braking, adaptive cruise control and lane departure prevention.Moody's believes that as many insurers will not lower their pricing right away,waiting instead until they are sure that declines in the frequency of accidentsare lasting, their profitability could rise over the next five to 10 years.

Moody's noted, however, that in the long term self-drivingcars could dramatically reduce auto insurers' profits as reduced accidents willtranslate to lower premiums. The impact can be significant for the insurancesector as personal auto insurance is the largest property and casualtyinsurance line of business in many countries, including the U.S., Moody's said.

Achieving widespread adoption of self-driving cars will takedecades given technological, regulatory and consumer hurdles, Moody's said."Because the anticipated change to the entire auto insurance industry willbe gradual, we believe innovative insurers will be able to adapt theiroperations and balance sheets to these changed circumstances."

Moody's believes that the U.S. will be slower to shift todriverless cars than Asian countries such as China, Japan and South Korea.Latin America could be slower to embrace self-driving vehicles, Moody's said,adding that while parts of Europe could be faster than the U.S. to adopt thesecars, a strong driving culture, privacy concerns and limited purchasing powerof younger consumers could potentially slow down adoption of self-drivingvehicles in other European countries.