TY - JOUR
T1 - Connected automated vehicles and insurance
T2 - Analysing future market-structure from a business ecosystem perspective
AU - Pütz, Fabian
AU - Murphy, Finbarr
AU - Mullins, Martin
AU - O'Malley, Lisa
N1 - Publisher Copyright:
© 2019
PY - 2019/11
Y1 - 2019/11
N2 - The progressing interconnection and automation of automobile vehicles has profound implications for society and business operations. Existing business models and revenue streams in the automotive and transportation sector will be affected by this developing technology and a potential shift of societal mobility usage patterns. These disruptions will also have a far-reaching impact on the automotive aftersales service and motor insurance sector. Existing literature on the strategic impact of connected automated vehicles (CAV) for the motor insurance mostly focusses on questions of liability and the potential impact on the overall premium volume of the business. Enlarging this research focus with an analysis of service-based mobility approaches and the emergence of business ecosystem platforms in the automotive and mobility sectors, this paper finds that these developments have significant spillover effects on customer interfaces and the competitive environment of motor insurance. In particular, the ability of traditional motor insurers to integrate themselves in business ecosystem platforms built around CAV is disadvantaged due to a lack of an equal technical and legal access to in-vehicle data required for telematics-based services. Referring to this barrier, this research shows that the shift of the automobile to an interconnected smart device makes it necessary that automotive manufacturers (OEMs) open their business ecosystem platforms for third parties to maximize own value propositions. However, as this awareness seems not to be penetrated into adequate proactive action of OEMs, we suggest a timely intervention of legislative bodies to achieve the common regulatory objective of an undistorted and fair competition in telematics-based (insurance) service offerings.
AB - The progressing interconnection and automation of automobile vehicles has profound implications for society and business operations. Existing business models and revenue streams in the automotive and transportation sector will be affected by this developing technology and a potential shift of societal mobility usage patterns. These disruptions will also have a far-reaching impact on the automotive aftersales service and motor insurance sector. Existing literature on the strategic impact of connected automated vehicles (CAV) for the motor insurance mostly focusses on questions of liability and the potential impact on the overall premium volume of the business. Enlarging this research focus with an analysis of service-based mobility approaches and the emergence of business ecosystem platforms in the automotive and mobility sectors, this paper finds that these developments have significant spillover effects on customer interfaces and the competitive environment of motor insurance. In particular, the ability of traditional motor insurers to integrate themselves in business ecosystem platforms built around CAV is disadvantaged due to a lack of an equal technical and legal access to in-vehicle data required for telematics-based services. Referring to this barrier, this research shows that the shift of the automobile to an interconnected smart device makes it necessary that automotive manufacturers (OEMs) open their business ecosystem platforms for third parties to maximize own value propositions. However, as this awareness seems not to be penetrated into adequate proactive action of OEMs, we suggest a timely intervention of legislative bodies to achieve the common regulatory objective of an undistorted and fair competition in telematics-based (insurance) service offerings.
KW - Automobile services
KW - Business ecosystems
KW - Connected automated vehicles
KW - Mobility ecosystems
KW - Motor insurance
UR - http://www.scopus.com/inward/record.url?scp=85070678029&partnerID=8YFLogxK
U2 - 10.1016/j.techsoc.2019.101182
DO - 10.1016/j.techsoc.2019.101182
M3 - Article
AN - SCOPUS:85070678029
SN - 0160-791X
VL - 59
SP - -
JO - Technology in Society
JF - Technology in Society
M1 - 101182
ER -