Warren Buffett says self-driving cars will hurt the insurance industry

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Warren Buffett says self-driving cars will hurt the insurance industry

Billionaire investor, Warren Buffett said that the self-driving cars could become a major threat to the insurance industry when the technology hits the market.

If electric autonomous vehicles prove to be safer than regular cars, insurance costs will plummet.

The billionaire believes by the time self-driving cars hit the roads in force, insurers like will have taken a serious hit.

“If they’re safer, there’s less in the way of insurance costs, [and] that brings down premium buy significantly,” the billionaire investor said.

Buffet realises that the disruption of the entire motor insurance industry takes time and that at first, the market will embrace self-driving cars slowly despite the immense amount of money in research and development that these new technology companies are spending.

He went on to say, “If I had to take the over and under [bet] 10 years from now on whether 10 percent of the cars on the road would be self-driving, I would take the under, but I could very easily be wrong,”

“It’s something that billions and billions and billions are spent on, and brains are being involved in it, so it could easily come sooner than I think. And it will be negative for auto insurers,” he continued.

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