MONTE CARLO, Monaco,
Sept. 12, 2016 /PRNewswire/
-- Aon Benfield, the global reinsurance intermediary and
capital advisor of Aon plc (NYSE:AON), has launched its annual
Global Insurance Market Opportunities (GIMO) report, which examines
the key areas of potential growth and disruption for insurers.
The report, Riding the Innovation Wave, reveals that if
autonomous vehicle technology is adopted at even a moderate pace,
US motor pure premiums could decrease by 20 percent by the year
2035 compared to their 2015 levels – and potentially by more than
40 percent by the time that autonomous vehicles reach full adoption
in 2050.
With the first commercially available technology expected to hit
the road in 2018, the forecast assumes an 81 percent reduction in
claims frequency, and an increase in claims severity due to sensor
costs and an increased cost of handling product liability
claims.
Personal motor accounts for 47 percent of global insurance
premium – without this ballast and implicit capital subsidy,
Aon Benfield estimates that US
property-casualty insurance volatility could increase by 40
percent.
Paul Mang, CEO of Aon Analytics,
said: "Adoption of autonomous vehicles will of course be affected
by many variables such as regulatory challenges, cost to the
consumer, safety, vehicle ownership preferences, and the technology
itself. However, we as an industry need to act quickly to ensure
that we have the products available to align to the new paradigm;
if we fail to do so, we only invite disruption."
Now in its 11th edition, the Global Insurance Market
Opportunities report examines the ways in which insurers can be
innovative organisations, and how the industry can capture
opportunities from innovation and defend against threats of
disruption.
In terms of opportunities, if the current pace of growth is
maintained, Aon Benfield forecasts
that by 2020 global cyber premiums could reach USD10 billion – a figure at least as large as the
worldwide directors' and officers' liability market. Furthermore,
the Global Council on Internet Governance has forecast that
cybercrime could grow to USD2 to 3
trillion by 2020 – equivalent to the GDP of a top 10
economy.
In terms of potential disruption, the report reveals that in
2015 there was USD2.6 billion of
investment across more than 200 insurance startups, part of
USD9 billion invested in the sector
in the past several years globally.
Mr. Mang added: "Venture capitalists are not interested in our
industry in its current form; they are aiming to reorganise our
processes and operations in order that they can create new economic
opportunities for themselves."
The Global Insurance Market Opportunities report suggests that
insurers should perform a careful examination of their own value
chain, with the aim of evaluating core strengths and identifying
weaknesses. Firms should also think carefully about how data and
analytics can be applied to serving clients and reorganising core
operations.
The full report can be found at http://aon.io/2bW3AWG
Further information
For further information please contact Andrew Wragg (+44 207 522
8183 / 07595 217168) David Bogg or Alexandra Lewis
Follow Aon on Twitter: https://twitter.com/Aon_plc
For information on Aon plc. and to sign-up for news
alerts: http://aon.mediaroom.com
Logo -
http://photos.prnewswire.com/prnh/20100719/AQ37264LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/autonomous-vehicles-may-reduce-us-motor-premiums-by-more-than-40-percent-by-2050-according-to-aon-gimo-report-300326016.html
SOURCE Aon plc