By now, you’re familiar with at least the concept of driverless cars—a new technology where computers will replace humans behind the wheel, gradually at first, and then all at once ten or more years down the (pun intended) road. But what you probably haven’t seen is a comprehensive review of the interesting social changes a driverless world would bring about—and the potential investment implications of it.
You hear about how technology is disrupting entire industries, but one that sees disruption coming most clearly is the auto insurance companies. Eventually, perhaps within ten years, automobiles will be driving themselves, and the common assumption is that there will be fewer accidents. But what, exactly, will the industry be insuring: drivers or computer code? How likely will accidents be with this new technology? How much will each accident cost in repairs and human medical expenses?