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from the don't-tell-them-about-motorcycles dept.
Like record companies at the dawn of online music file sharing, Allstate, Geico, State Farm, and others are grappling with innovations that could put a huge dent in their revenue. As carmakers automate more aspects of driving, accidents will likely plunge and car owners will need less coverage. Premiums consumers pay could drop as much as 60 percent in 15 years as self-driving cars hit the roads, says Donald Light, head of the North America property and casualty practice for Celent, a research firm. His message for insurers: "You have to be prepared to see that part of your business shrink, probably considerably."
Auto insurance has long been a lucrative business. The industry collected about $195 billion in premiums last year from U.S. drivers. New customers are the source of so much profit that Geico alone spends more than $1 billion a year on ads to pitch its policies with a talking lizard and other characters. Yet even Warren Buffett, whose company, Berkshire Hathaway, owns Geico, is talking about the long-term risks to the business model. "If you could come up with anything involved in driving that cut accidents by 30 percent, 40 percent, 50 percent, that would be wonderful," he said at a conference in March. "But we would not be holding a party at our insurance company."
The loss of revenue for the insurance industry gives me a sad.
(Score: 3, Insightful) by Anonymous Coward on Friday July 31 2015, @06:29PM
Like record companies at the dawn of online music file sharing, Human head lice, Roundworm, Tapeworm, and others are grappling with innovations that could put a huge dent in their non-mutual symbiotic relationship. As host organisms automate more aspects of living, parasitic activity will likely plunge and hosts will need less coverage. Premiums consumers pay could drop as much as 60 percent in 15 years as advanced serum protiens hit the roads, says Donald Light, head of the North America property and casualty practice for Scolent, a research firm. His message for insurers: "You have to be prepared to see that part of your business shrink, probably considerably."
Parasitism has long been a lucrative business. The industry collected about $195 billion in premiums last year from U.S. human hosts. New hosts are the source of so much profit that Hookworm alone spends more than $1 billion a year on ads to pitch its policies with a talking scolex and other characters. Yet even Warren Buffett, whose company, Berkshire Hathaway, owns Proglottidco, is talking about the long-term risks to the business model. "If you could come up with anything involved in parasitism that cut accidents by 30 percent, 40 percent, 50 percent, that would be wonderful," he said at a conference in March. "But we would not be holding a party at our infectious disease company."
The loss of revenue for the Cestoda industry gives me a sad.