In 25 years, technological advances may render car ownership as we know it obsolete. The car-insurance industry may be buried right beside it.
Self-driving cars and ride-sharing programs will completely disrupt the car-insurance industry, said Deutsche Bank on Monday in a note about auto insurer Progressive.
The analysts downgraded Progressive, citing underlying fundamentals for the company in its current form but also raising the possibility that the new technology will make its primary business outdated. The note said:
“We believe the concurrent rise of instant ridesharing 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.”