Autonomous-driving technology should raise auto insurers’ profits in the short term, even as it raises questions about their long-term business models, a new report predicts.
Increasingly common autonomous features, including automatic braking and lane departure prevention, will reduce the frequency of common accidents -- although crossovers and higher-tech vehicles may require costlier repairs -- Moody’s analyst Jasper Cooper wrote in the report. Cooper said many insurers will hold off on lowering premiums for the next decade to ensure that those declines are permanent, and enjoy fatter profits in the meantime.
Read Article