Goldman Sees Autonomous Vehicles Transforming Insurance World

The rise of autonomous vehicles will force a reconfiguration of the $400 billion US auto-insurance industry, as accidents caused by human error decrease and costs are slashed, but questions about liability remain, according to Goldman Sachs.

“Autonomy has the potential to significantly reduce accident frequency longer-term and reshape the underlying claim cost distribution and legal liability for accidents,” Goldman Sachs analysts including Mark Delaney wrote in a June 9 note to clients.

The autonomous vehicle market is growing fast and projected to reach $7 billion in 2030, and the potential market for autonomous virtual drivers for Class 8 trucks in ...