According to Chicago Tribune, Allstate’s 2015 annual report indicated driverless cars are a threat to its business. This is something that wasn’t a part of their 2014 annual report making it an issue that’s only become real enough to worry about in the last year.
Right now, autonomous cars aren’t commonplace, although there are autonomous features in many new cars and they’ve been proven to reduce accidents. As these cars become more prevalent and accidents are reduced, the current auto insurance model stands to become obsolete.
The potential for driverless cars to challenge the insurance industry has been on the horizon for years, but Allstate’s acknowledgement of the issue as a risk in its annual report shows that it’s no longer a part of the far distant future. Insruance companies need to worry now. Who needs auto insurance when there aren’t any driver’s to insure?