Good portfolio management is essential for profitable underwriting of motor insurance and suitable pricing criteria need to be found. A look at other markets can also prove useful. Mr José Antonio Sobrino Reineke from Munich Re looks at the upcoming challenges and risks in motor.
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Self-driving vehicles are definitely on the horizon. However, nobody knows for sure when they will arrive, how they will work and how much they will cost. Nonetheless, Swiss Re's Mr Roy Hraiki says that what is certain is that it will change transportation as we currently know it. It will also be a game-changer for the insurance industry, particularly for motor insurers.
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A tightly regulated and tariffed environment can be beneficial for protecting consumer interests and sustaining industry profitability in the initial phases of development. Mr Roberto Malattia and Mr Rajesh Sabhlok of Towers Watson say this can, however, eventually become a constraint to further growth as insurance markets evolve. They recommend a more freely competitive environment, with a balance of prudential and consumer protection regulation, be established when the industry demonstrates sufficient depth, character, maturity and experience.