Insurance market Lloyd’s of London is said to be pushing to revamp auto coverage as it thinks that the rise of driverless cars looms.
Lloyd’s Chief Executive Officer John Neal said that the company is talking with automakers about how to set up different policies to stay relevant as car ownership changes.
Bloomberg reports that Neal said that the shift is “inevitable” as companies such as Tesla explore their own insurance options.
‘Within five years, particularly in an urban environment, we’ll find a very different approach to the supply of a motor vehicle and the insurance that goes with it,’ Neal said, according to Bloomberg. ‘It won’t be conventional motor insurance.’
Bloomberg says that when responding to a question about Tesla’s decision to create its own insurance product with help from the industry, Neal said that autonomous vehicles will merely result in demand for a different product, and not the end of car insurance.