Autonomous vehicle boom could slash $3 billion of workers' comp premium

The rapid advancements in autonomous vehicle (AV) technology, particularly in the trucking industry, could lead to a significant transformation in the American workforce. Deloitte estimates that approximately 380,000 long-haul truck drivers could be replaced by AVs within the next five years, with potential consequences for the insurance industry. This shift could result in a loss of around $3 billion in workers’ compensation premiums and substantial changes in commercial auto, product, professional liability, and cyber insurance lines. Insurers will need to adapt to the new exposures posed by self-driving trucks, including those not covered by traditional commercial auto policies, such as manufacturing-related risks and cyberattacks. Additionally, brokers will face the challenge of finding appropriate coverage for trucking firms embracing AV technology, with reinsurers showing interest in testing the waters in this emerging market. The adoption of AV technology in the trucking industry will depend on advancements in navigation, regulation, and technology over the next few years.