Technology moves fast and some of the latest technology includes artificial intelligence such as autonomous vehicles. During Tuesday’s 2019 Summit hosted by the Office of Insurance Regulation officials talked about what the industry can do to keep up.
Senator Jeff Brandes joined Chief Innovation Officer for Insurance Thought Leadership Guy Fraker to talk about what this new technology and others could mean for the industries involved.
Brandes says, “artificial intelligence, machine learning is the new electricity and it begins to hit every single industry much like electricity hit them back 100 years ago.”
For example, Brandes says autonomous vehicles are becoming steadily more common.
“Yesterday Cadillac announced they’re coming out with a new line of electric vehicles, Audi just announced they’re coming out with the new E-Tron series." said Brandes. "The big thing with electric vehicles is a couple of things. 1 you go from a car with an internal combustible engine that maybe has 1,500 moving parts to a car that maybe has 30 moving parts.”
Fewer parts mean less maintenance, and no oil changes. But for auto dealers, Brandes point out business could decrease with less need for drivers to service their cars.
“What happens to gas stations, gas stations obviously run on a very thin margin. All of a sudden you take, its 2030, 2035 we have 25 percent maybe 30 percent of vehicles being electric. What begins to happen to the gas station market?”
Insurance Thought Leaderships’ Chief Innovation Officer Guy says it’s time the insurance industry got a head start on adapting to the coming changes.
“This industries time has finally come among all the sectors to be upended, tested, and revised in a way that many other industries have already face. The difference now is the insurance industry and the individual companies regardless of size have a window of opportunity where it does not have to be a threat,” said Fraker.
Senator Jeff Brandes sits on the Senate’s Banking and Insurance committee and the Innovation, Industry, and Technology committee
