Here we review GC Capital Ideas posts on unmanned vehicle technology as an emerging risk and the challenges and opportunities it presents to (re)insurers.
The Dawn of the Drones: The Evolving Opportunities and Risks of Unmanned Aerial Systems and Driverless Cars: The overall rise of connectivity to a growing number of physical objects will entail additional emerging risks to individuals and companies. Examples include:
>>Unmanned Aerial Systems (UAS or drones)
>> - Trains are already in use in London and New York
>> - Self-driving cars may soon become more and more prevalent.
Unmanned Aerial Systems/Drones: Growth projections for the drone or Unmanned Aerial Systems (UAS) sector are nothing short of phenomenal, as the opportunities and advantages afforded by using this type of machinery in construction, agriculture, energy/utilities, mining, real estate, news media, film production and public safety become increasingly more apparent each passing day. Nevertheless, the potential economic benefits are considered to be vast, expecting to generate an estimated economic benefit of USD82 billion along with 100,000 jobs by 2025.
Self-Driving Automobiles: Technologies that we may take for granted today such as anti-lock braking and airbag systems, driving and parking assistance, hazardous condition traction control and global positioning system routing, may soon all come together and evolve into fully autonomous self-driving automobiles. Self-driving cars are expected to begin commercial production and be in use by 2017. Google, the pioneer in the field, claims it can cut road accidents by eliminating the human driver who gets distracted by text messages or becomes tired. Although safety and efficiency gains have been the most cited and prominent benefits for the rationale for the development of self-driving automobiles, a considerable number of challenges remain.