The Era of Mobility 'Approaches'... "Insurance Companies Must Hurry Product Development"

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] CES 2020, the world's largest home appliance and IT exhibition with participation from over 4,000 companies worldwide, had "mobility" as this year's key theme. There are forecasts that the emergence of autonomous vehicles will bring imminent changes to the insurance market.

According to a recent report titled "Changes in the Mobility Ecosystem and the Insurance Industry" released by the Korea Insurance Research Institute, changes in the mobility industry environment are expected to cause not only transformations in the existing automobile industry but also comprehensive changes in social systems.

The report estimates that the share of autonomous vehicles, robot taxis, robot shuttles?where autonomous driving technology and mobility services converge?will expand, and above all, the personal mobility market, including electric bicycles, electric kickboards, and electric wheels, will also grow significantly.

The report explained, "Many providers of mobility services based on the 'sharing economy,' such as 'Uber' and 'Lyft,' as well as providers developing and offering various digital platforms like 'MaaS' and Internet of Things (IoT)-related services, will emerge."

It also anticipated that safety issues and liability concerns related to accidents will become major points of contention, and controversies regarding data security, personal information leakage, and privacy infringement may continue to arise.

It pointed out that insurance companies should play a role in establishing reasonable regulatory standards and ensuring that coverage gaps do not occur.

Choi Won, senior researcher at the Korea Insurance Research Institute, stated, "There is a need for risk management measures for risks that may arise when providing shared services," adding, "Suppliers providing such services are likely to become major customers of insurance companies."

He suggested that the development of insurance products to cover risks such as personal information leakage, cyber risks, and IoT-related risks should be expedited due to the spread of smart mobility.

Furthermore, Senior Researcher Choi predicted, "The demand for liability insurance products that cover liability risks that may arise in connection with new mobility service provision will also increase."