Summary:The article published in The Week UK on the 22nd January 2018 was discussing the various features that motor vehicles are now coming standard with.
Where vehicles never had the self-driving safety features, they are now either standard on the vehicle or can be added as an optional extra. The features are said to assist with fewer people passing away in vehicle-related incidents.Point of View on Article:The article is bringing to light the positive aspects of all the new technology and added features that new vehicles (2017 and onwards) are coming out with. These features, which some consumers see as unnecessary features, are actually helping with reducing accidents and deaths.
And they are expecting a brighter outlook in future too.Impact on Short Term Insurance Providers:With more individuals (school leavers that are getting jobs and purchasing assets to their names, they are also first time insurers) purchasing vehicles and with all these features being added to vehicles, insurers are going to be able to generate more revenue on insuring the clients. As there will be more extra’s to cover.There should also be a decline in accidents as people are being more observant with all the added technology such as the camera’s and sensors, as well as parking assistance etc. The vehicle does warn the driver when something is wrong or is about to happen – which in turn will allow them to respond faster to the situation.
Where short-term insurance providers are saving money, they can look at expanding the product to include new features for their clients to benefit from (additional roadside cover, excess waivers etc)Possible Solutions:The only solution or more a suggestion I would have is that insurers would need to rethink the products that they have. As vehicles and technology evolve, so should the products. As the needs of the clients will evolve too.Look at reward programmes, and incentivizing drivers.
(Discovery Drive as an example)Article:http://www.theweek.co.uk/driverless-cars/91117/road-accidents-fall-as-driverless-tech-increases