Bye bye car insurance

Deutsche Bank believes that new technology will make the car insurance business obsolete. "The concurrent rise of instant ride sharing and autonomous vehicles presents real questions as to whether there will even be an auto insurance industry as we know it in 20 years, what percentage of cars on the road will be essentially accident-free in 10 years and whether to acknowledge in just 5 years that this isn't some 'George Jetson' fantasy."

Three key changes are coming:

1. "Accident frequency will decline to where the difference among driving behaviours becomes negligible and it is difficult to charge a meaningful premium for insurance."
2. "Insurance will take the form of commercial product liability instead of personal driver liability as we let the robots do the driving."
3. "Vehicle utilization will rise and cars on the road will decline as one car can serve the driving needs of multiple travellers per day, which, in-turn, means fewer cars."