How Do you Assess Likelihood about the Unknown: Insurers and Driver-less Cars

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Tesla Motors is going to roll out a self-driving feature on selected cars this summer. The dilemma for insurance companies is “how do you assess the risk without an existing track record?”

Questions:
1. Even when self-driving cars are widely available, what will delay their widespread adoption?
2. Why do you think that California is leading the nation in trying to understand the insurance issues?
3. How is auto insurance regulated?
4. According to the article, what is the biggest issue in the event of a crash?
5. What is the bright side of this story? Discuss.

Source:
Kaufman, A.C. (2015). Tesla’s Self-Driving Feature Leaves Insurers Idling As States Scramble. Huffington Post.com, April 13 (Retrievable online at http://www.huffingtonpost.com/2015/03/28/tesla-self-driving-cars_n_6961922.html?utm_hp_ref=business)

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