The auto insurance industry is undergoing a fundamental shift. Shared mobility, autonomous driving, and connected vehicle technologies are transforming how we interact with vehicles and how automotive insurers assess risk. Traditional risk models based on driving behavior and claims history are no longer sufficient. Today, the most critical but often misunderstood risks lie in the vehicle’s software, connectivity, and the growing threat of cyberattacks.
To adapt, auto insurers are forming partnerships with automotive manufacturers (OEMs) to gain access to technical insights and vehicle data. But these collaborations fall short without a key component: cybersecurity. Without a clear understanding of the vulnerabilities in connected vehicle systems, insurers risk underpricing policies and misattributing liability – both of which can have costly consequences.
Figure 1. Effects of vehicle connectivity on auto insurance
Here are the key highlights driving this shift and why automotive cybersecurity is the missing link:
- Mobility trends are redefining risk
Technology, not the driver, is becoming the primary source of risk. Shared mobility, autonomous vehicles, and connectivity demand a new approach to auto insurance. - Traditional insurance models are under threat
Software failures and cyberattacks fall outside the driver’s control. Insurers must rethink how risk is assessed and liability is assigned. - Partnerships between auto insurers and OEMs aren’t enough
While these collaborations are increasing, neither party has the expertise to assess and manage complex technology-related risks. - Cybersecurity is the missing link
Cybersecurity enables insurers to price policies based on emerging threats, determine accident liability more accurately, and reduce the chances of costly litigation. It also helps OEMs and mobility service providers lower their exposure and, in turn, their insurance costs. - VicOne: a strategic partner in the new ecosystem
With solutions such as a vehicle security operations center (VSOC) platform, intrusion detection or prevention system (IDS/IPS), smart cockpit protection, and automotive threat intelligence, VicOne empowers OEMs and auto insurers to stay ahead of cyber risks and thrive in the new mobility ecosystem.
Are you ready to future-proof your auto insurance strategy?
Download “Insuring the Future of Mobility,” a research paper authored by Salvatore Gariuolo and Rainer Vosseler of Trend Micro FTR Research for VicOne.
