Self-Driving Cars Head Toward Collision With Insurance Status Quo

Millions of Americans are injured, and tens of thousands killed, in auto accidents each year. Self-driving cars should reduce those numbers as they take to U.S. highways and roads. As a result, "crash economy" industries that provide repair, salvage, medical and financial services may be headed for an overhaul.

The insurance industry is a leading candidate on that list. Research firm IBISWorld pegged insurance as a $311 billion piece of the crash economy. By 2026, insurers will begin to see premiums decrease as a result of autonomous vehicles, according to consultant Accenture. By 2035, annual premium revenues are projected to fall as much as $25 billion, an estimated 12.5% of the total market.

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