“Subsequent huge step”: Autonomous autos will “revolutionize” the motorcar legal responsibility business – Specific
Self-driving cars are a relatively new phenomenon in driving, with Tesla leading the way with its “autopilot” system. In the UK, the Department of Transportation said automated lane departure warning systems (ALKS) would be the first type of hands-free driving to be legalized.
Speaking exclusively to Express.co.uk, he said, “Transportation is changing faster than ever, but the traditional insurance industry cannot keep up.
“The proliferation of electric cars, new business models such as ride sharing and the emergence of autonomous vehicles pose major challenges for which traditional insurers are simply not equipped.
“To some extent, autonomous cars are the next big step – features emerging from autonomous vehicle testing are already embedded in new vehicle technology in the form of advanced driver assistance systems (ADAS) and other safety features.
"I think this trend will continue where autonomous testing helps to constantly improve the safety of modern vehicles."
Mr Klinger said Flock identified some key challenges related to autonomous cars, such as:
He also mentioned concerns about liability decisions in the event of an accident, with some wondering where the fault lies in an accident – the vehicle owner or the technology.
He continued, “The standard model of just waiting for claims to be paid will not work for modern customers.
“Ultimately, even in commercial insurance, purchasing decisions are made by individuals and people today expect more from their products and services.
“These buyers are getting proactive and proactive engagement with so many other products and services (from banking to travel and beyond) – so shouldn't they be getting the same value from their insurance partners?
"It will be the standard because customers don't expect less."
Ordnance Survey, the UK's national mapping service, recently invested in Flock in preparation for further expansion to disrupt the insurance market.
Paul French, OS's Chief Proposition and Innovation Officer, commented, "We are thrilled to be an investor in Flock who is revolutionizing the insurance industry and expanding into new and exciting markets, including connected and autonomous vehicles."
Commenting on the partnership, Ed Klinger said, “We have worked closely with Ordnance Survey since Flock was founded and we have used their data in our risk engine and plan to continue using it.
"We often share insights, ideas and help each other with product development and definitely plan to double that."