The Interstate 74 corridor already has several major players, including State Farm and Rivian.
As the country’s largest auto insurer, it’s no surprise State Farm is trying to play a leadership role in how automated mobility will change the insurance business. A State Farm executive told WGLT
last fall that the company’s mindset around autonomous vehicles had shifted—initially seeing it as a threat but now sensing an opportunity.
First, there are questions.
“Who's gonna be covered? Is it the vehicle? Is it the rider? Is it the company? Is it the system? All those things need to be figured out,” Quandt said. “They want to understand that. But they also know that as we connect the vehicles to infrastructure, there’s gonna be a lot more information about the structure of the infrastructure.”
Insurers want to better understand the different coverage realities that will occur with automated mobility. They’ll be more dynamic, Quandt said. Instead of just using your age and driving history to set the price of an insurance product, how does that change if an insurance company knows the conditions of the sensor-covered roads you drive on, or your day-to-day driving behavior?
“That’s the sort of level of detail we’re going to get to. And that’s where insurance companies are looking, is how do we start to create new coverage scenarios that optimized coverage and limit our risk? It’s a whole brave new world, and that’s where looking not just at the vehicle but all the factors that are going to be involved is really a much richer territory and the long tail they’re looking at.”