Any hope that the government would help stall the evolution of automation in the automotive industry is now gone. Earlier this month, the United States Department of Transportation (DOT) released guidance for automated vehicles (AVs) aimed at promoting the integration of AVs on public roads. “Preparing for the Future of Transportation: Automated Vehicles 3.0” (AV 3.0) discusses the current federal policies governing AVs and the government’s efforts to pave the way to safe and fast integration.
Because AVs are expected to cause significant disruptions within the auto insurance world, insurance executives should pay close attention to AV 3.0. To cope with expected disruptions caused by AVs, insurance carriers will need to redesign current operations and develop new strategies to reflect the needs of consumers in this landscape. To do this, insurance companies need to understand the technological advancements and to keep up with current policy and regulation. As AVs continue to rapidly evolve, insurance executives should take action now to become part of the discussion and take steps to properly anticipate these changes.