Any significant change to the automobile insurance market has a dramatic impact on the insurance industry as a whole. In most mature markets, automobile insurance is the single largest line of business, representing 42 percent of gross written premium in the U.S., according to a Best's Special Report on the property and casualty market, where liability (including commercial auto) represents 26 percent of the overall market.
At one point, it was believed that telematics usage-based pricing was going to change the face of auto insurance but really, telematics is the Betamax of insurance in a digital world: an interesting footnote that will soon be irrelevant. The real seismic event in the industry will be the emergence of the autonomous car.
Multiple sources believe that autonomous vehicles will be on the road by 2020, with semi-autonomous driving already a reality. No one knows for certain how this will impact the insurance market except that it will. Chances are, how it impacts the industry may vary by regulatory market.
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