emerging
Evolving Mobility Disrupts Auto
New mobility models, including EVs, AVs, and shared mobility, are transforming the auto insurance landscape.
Timeframe
near-term
Subcategories
Impact areas
Detailed Analysis
The rise of electric vehicles (EVs), the development of autonomous vehicles (AVs), and the growth of shared mobility services are fundamentally altering the auto insurance sector. The report states that "New mobility models will force carriers to rethink their approach to distribution, pricing, product design, and claims processing." The increasing prevalence of EVs, with their different risk profiles and higher repair costs, necessitates new underwriting and pricing strategies. The eventual adoption of AVs will further disrupt the market, potentially leading to a decline in personal auto insurance premiums as responsibility shifts from drivers to machines.
Context Signals
EV sales grew by 35% globally in 2023.
ADAS features are becoming increasingly common in new vehicles.
Shared mobility and micromobility markets are expected to double by 2030 in developed economies.
Edge
Partnerships between insurers and OEMs/EV providers will become crucial for data access and customer acquisition.
Development of specialized insurance products for EVs, AVs, and shared mobility services.
Potential for new business models based on data-driven risk assessment and personalized pricing.
