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EY’s report underlines that global automotive sector has been structure necessary for highways and eliminating cyber-security
going through a radical change due to social, economic and tech- concerns. In addition to developed countries, autonomous vehi-
nological trends; and autonomous vehicles will take their place cles are expected to decrease the number of vehicles in traffic;
in the daily lives of people in near future. especially in developing crowded countries such as China, where
traffic is a huge problem. Moreover, as the usage of shared rides
According to other information in EY’s report on driverless increases, need for individual insurance products decreases. For
vehicles, autonomous vehicle technology will rewrite the rules the long term, such changes are expected to decrease the number
of automotive insurance business, which has a current value of of accidents considerably, forcing insurance companies to make
approximately 700 billion USD combined with the automotive strategic choices.
industry. The report states that many automotive companies are
building up trust of their customers in driverless vehicle tech- EY underlines in the report that insurance companies should im-
nology by only equipping their high-segment models with smart mediately start working on basic matters such as how financial
driving functions such as speed control, accident prevention and responsibility will transform for the transportation forms of the
reporting. Moreover, the report estimates that a new technol- future and where the risks might concentrate. According to EY
ogy will be launched in 2020 to prevent all traffic accidents. authorities, majority of the accidents that might occur in the
All these developments, report emphasizes, will create an impact future will result from system or software errors; therefore, they
on the insurance market such as decreasing insurance premiums stress that it would be highly important for insurance companies
and lengthening vehicle guarantee periods. to see who would be responsible from those risks. They state
that manufacturers or producers of original parts of autonomous
Autonomous vehicles can be launched starting from vehicles could be held responsible from those risks; adding that
2030 many new risks might occur in cyber-attack, software error and
control malfunction fields, as driverless cars become widespread.
According to the report published by EY, despite the big amount
of investments in driverless vehicle technology, it is not expected Risks that might occur after the use of autonomous vehicles,
to be used by big masses before 2030. Some of the challenges such as cyber-attacks, software errors, and control malfunctions
facing autonomous vehicle technology include extensive secu- might create new product alternatives in the insurance market.
rity statistics requested by regulatory authorities, building the

Rabia Kübra Kanun/ kubrac@bestyayincilik.com