The responsibility is shifting to the manufacturers! Bank of America warns that self-driving cars will rewrite insurance rules.

The popularity of autonomous vehicles is profoundly reshaping the ecological pattern of the car insurance industry. This technological revolution has not only sparked disputes over liability, but also opened up new value spaces for industry participants. In a recent research report, Bank of America Corp analyst Joshua Schank's team pointed out that when autonomous driving technology becomes mainstream, the current insurance system, which holds the driver responsible for accidents, will face a fundamental restructuring - accident liability will shift from individuals to car manufacturers and software suppliers. This shift may eliminate the pain point of long-term losses in traditional auto insurance liability insurance. Although there are concerns in the market about "technological advancements squeezing insurance profits," Bank of America Corp presents a different view through data analysis: while autonomous driving does reduce accident rates, the increase in the severity of accidents has offset the cost savings from the decrease in frequency. Bank of America Corp pointed out that although car safety technology has been continuously iterated over the past thirty years, the improvement rate in accident rates has significantly slowed down, providing a new consideration dimension for insurance pricing. It is worth noting that Goldman Sachs Group, Inc. predicted in June of this year that autonomous driving will force a restructuring of the $400 billion U.S. car insurance industry. The research shows that by 2040, the cost of car insurance in the United States may decrease from the current $0.5 per mile to $0.23 per mile, a reduction of over 50%. However, the institution emphasizes that premium growth rates will remain moderate for at least the next ten years. In terms of market size, Goldman Sachs Group, Inc. predicts that the autonomous truck sector will create a virtual driver market of approximately $5 billion by 2030, while the overall autonomous car market is expected to exceed $70 billion during the same period. The current core controversy focuses on the determination of liability. According to current U.S. law, drivers are responsible for accidents, but in the context of autonomous driving, liability will shift to the categories of product liability insurance and cybersecurity insurance. In this regard, Goldman Sachs Group, Inc. is bullish on the long-term value of companies such as Tesla, Inc. (TSLA.US), Waymo parent company Alphabet Inc. Class C (GOOGL.US), and autonomous driving technology provider Aurora, while listing insurance leaders like Progressive as beneficiaries, believing that the market's concerns about technological risks are overly exaggerated. On the regulatory front, areas like Texas have established relatively lenient testing environments, requiring autonomous vehicles to be equipped with cameras, comply with traffic regulations, and purchase insurance. This regulatory framework provides a testing ground for technological implementation, but a national standard for liability determination still requires federal legislation or judicial rulings to clarify. It is worth noting that insurers like Progressive, with their long-term layout in the field of connected car insurance, are consolidating their market position through technological empowerment. Their advantages in customer acquisition and precise pricing may help them continue to expand market share during the industry's transformation period.