Most modern forms of transport such as cars, trains and bicycles have remained fundamentally unchanged for decades, except for enhancements and modifications to allow us to travel further and faster. However, it seems we could now be on the cusp of a 'transportation transformation', with the Minister of State for the Department of Transportation predicting the fastest change in transport technology since the victiorian era. So what could the future of mobility look like and how might it affect the insurance industry?
Technological advances in the automotive industry include electric cars, progress towards autonomous or 'self-driving cars' and connected cars. The last of these is revolutionising fleet management through the use of telematics to assess vehicle performance and driver behaviour. Naturally this presents risks in the form of hacking and cyber threats which insurers need to consider particularly as the market for connected vehicles continues to expand.
The potential for claims inflation is another insurance consideration, with increasingly complex technology and parts, plus the need for specialist repairs leading to higher repair costs.