The industry is now starting to consider the impact of future legislation with the intent of going green.
When it comes to the majority of cities, traffic jams – particularly at rush hours – are generally accepted as a part of the urban experience, but this could change dramatically, as could the state of auto insurance, if a number of cities around the world that are considering a future ban on automobiles within those areas actually go through with the concept.
Even some of the countries that are most associated with driving are working for better environmental friendliness.
Germany is certainly among the countries that is known for its deep love affair with cars, comparable to that of the United States. That said, in the hopes of establishing a greener urban experience, they have declared their intention to ban cars from its second largest city by the year 2034. Hamburg, a city in the northern side of the country, has recently launched the Green Network Plan, which is an initial concept for an expanded public transportation plan which would also include additional cyclist and pedestrian routes. Eventually, this would also lead to the phasing out of cars from the city’s center over the next twenty years, which would turn auto insurance in the area on its head.
Auto insurance companies will need to take a second look at urban strategies and the directions they may take.
This, at a time when the coverage industry is already struggling to find a new focus. The property insurance sector has already been seeing some challenges due to the increase in severe storms that have been occurring and that are now being predicted to become more commonplace into the future. As agents have been looking to other forms of coverage to balance that riskier product, car insurance had been a natural alternative. Now, it appears that there could be uncertainty in those areas, as well.
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Auto accident attorneys could also feel the pinch from this type of legislation, as auto accidents will be sure to plummet, causing them to lose their primary business.
State accident statistics currently show that cities present a notably larger risk of crashes than suburbia and rural areas. Should vehicles be removed from rural areas, it will play a large role in the sector’s loss ratio that is currently being experienced by actuaries and auto insurance companies.