Bank of England takes a look at the economic impact of driverless cars

Good to see both the Bank of England blogging, and taking driverless cars seriously:

In the UK 23% of all car insurance claims result from parking incidents of which 71% occur during reversing. A switch to driverless cars could largely eliminate these costs. This is a double edged sword for UK insurers who underwrote around £8bn in private motor insurance premiums last year. What they could save in falling claims costs and frequency, they stand to lose in shrinking premiums – one estimate being as much as 50% by 2025 and 80% by 2040 according to Thatcham Research.

The entire basis of motor insurance, which mainly exists because people crash, could also be upended.

You can read the full post here.