I was invited by the organizers of the Insurance Canada Technology Conference to participate on a couple of panels and my talks focused on mobility changes impacting auto insurance. I discussed two trends, enabled by technology, that are already having on effect on auto insurance, although many in the insurance industry have not yet “felt” them. The first of these trends is car sharing. And while we’ve discussed this trend is previous newsletters, a refresher might be useful.
A few days ago, Tesla announced with great fanfare that it is building a “Giga Factory” for battery production in the southwestern United States. There are even rumours that Apple might be involved. What does this mean? Well, for one thing, the availability of good batteries at an affordable price is the main bottle neck to serious penetration of the electric car in the marketplace. Range anxiety, the idea that once in a while your electric car might not be able to get you where your heart so desires, is the single most important factor that holds consumers back from acquiring an electric car.