Many experts have predicted that the introduction of self-driving cars will mean the decline of insurance companies. A Morgan Stanley report back in 2016 estimated that the insurance industry would dwindle by as much as 80 percent by the year 2040. Newer research, however, is debunking this idea. Instead, future coverage may just be shifting away from Illinois drivers.
Analysts at Bloomberg New Energy Finance have stated that rather than a sudden decline in revenue, insurance companies will experience a gradual shift in the type of auto insurance products that they can make available. New sources of revenue are also likely to open up. Policies will remain, but who pays for them may change; manufacturers and technology companies will be needing coverage instead of individual drivers.