By Bill McDonough, Editor, Body Language
A recent report issued by the investment banking firm Morgan Stanley and the Boston Consulting Group, as covered in Forbes magazine, paints a dire picture for the future of the automobile insurance market. Citing advances in on-board safety features, the expansion of ride sharing, and the looming introduction of self-driving vehicles, the article predicts that insurance companies may see declines in auto coverage of 18% to 60% by 2030, and 54% to 84% by 2040.
This, of course, has implications for the aftermarket parts industry. Fewer cars and a reduction in the number of crashes will result in a shrinking market for replacement parts. The industry will need to adapt and adjust to this reality.
You can read the full article here.