Breana Noble The Detroit News Published 11:57 PM EDT Oct 29, 2018 Ann Arbor — Insurers are bracing for change as they plan for a future with self-driving cars. Although the hope is that autonomous vehicles will decrease traffic incidents and improve road safety, it could take years before the benefits of expensive-to-repair, technology-packed vehicles reduce insurance premiums. Meanwhile, autonomous vehicles promise to shift liability for accidents from drivers to the car itself, threatening insurers' traditional business model. "There's angst, anxiety, worry (because) ... we're heavily in the auto business," Neil Alldredge, senior vice president of corporate affairs for the National Association of Mutual Insurance Companies, told auto insurers earlier this month at an Ann Arbor conference on the topic. "We should do everything we can to understand the technology around autonomous vehicles, but don't panic. There's some time here to work some … [Read more...] about Self-driving cars expected to shake up insurance industry
National association of mutual insurance companies
Sections SEARCH Skip to content Skip to site index Subscribe Log In Log In Today’s Paper Advertisement Supported by Your Money Adviser ByAnn Carrns Oct. 19, 2018 Living in the wrong ZIP code — even a short distance from a boundary — may mean a difference of hundreds of dollars in your automobile insurance rates, a new analysis finds. The Consumer Federation of America, a nonprofit advocacy group, tested annual auto premiums from six big insurers in 10 cities. The tests found that good drivers from homes that are near each other — in some cases less than 100 yards apart or even right next door — yet in different ZIP codes are often quoted disparate rates. With other factors being equal, addresses in less affluent ZIP codes with higher minority populations were quoted annual premiums that were $410 higher, on average, than those in neighboring ZIP codes with wealthier, more heavily white populations, … [Read more...] about Your Neighbor in an Adjacent ZIP Code May Pay Less for Car Insurance
A radical move by one of the biggest life insurers in North America has experts questioning whether the company could reshape the model for the industry — by building business around helping its customers live longer. In September, insurance company John Hancock announced that it will include its Vitality health incentive program, which customers had to opt into in the past, in all its policies from here on out. Policyholders can share personal health information, like their daily diet and data from fitness trackers, and be rewarded for healthy lifestyle choices through prizes and lower premiums. In some ways, life insurance is an inherently morbid industry, since it requires its customers to prepare for their deaths. But by writing the Vitality program into all its policies, John Hancock is trying to refocus its business model around helping people live longer, healthier lives, the company said. It sounds altruistic, but the benefit is mutual — the longer their customers … [Read more...] about John Hancock insurance program could change the industry
WASHINGTON (Reuters) - A threat by the U.S. government to impose tariffs of up to 25 percent on imported auto parts could hit consumers in unexpected ways: higher repair costs, insurance premiums and even the theft of more cars for their parts, the industry said. Mechanics' tools are seen at a garage in San Diego, California April 17, 2014. REUTERS/Mike Blake U.S. President Donald Trump’s administration has launched an investigation into whether auto imports pose a national security threat and threatened to slap the tariffs on cars from the European Union and elsewhere. A coalition of auto insurance groups said in previously unreported comments that hiking tariffs on imported auto parts by 25 percent could increase costs by 2.7 percent, or $3.4 billion annually, for personal auto insurance premiums. The U.S. Commerce Department will hold a hearing about the matter on Thursday. Consumers will bear virtually all the higher repair costs, said the American … [Read more...] about U.S. tariffs may raise cost of insurance, parts, drive up auto thefts
No matter how diversified Detroit’s economy has become, the auto industry is its soul. The same can be said about Pittsburgh and steel or Houston and oil. But while the Twin Cities has been the heart of certain industries throughout the years — the flour mills at the turn of the 20th century, the computer industry in the 1970s and ’80s, even the medical device industry now — its psyche is tied to its wide variety of business headquarters. “Even as industries rise and fall, you’ve got these headquarters here that create an ecosystem of smaller businesses and skills,” said St. John’s University economics professor and historian Louis Johnston. Headquarters draw talent and entrepreneurship to the region, increase civic investments and participation, and bring the kind of economic stability and vitality that land cities and states on those ubiquitous best-of lists and rankings. “Headquarters are critical to our future,” said Mark … [Read more...] about Companies come, companies go. Do headquarters still matter?