The other side of an emerging technology

At Tematica Research, we identify investment themes — or thematics as we refer to them at Tematica — by looking at the intersection of shifting economics, demographics, psychographics, technologies, mixed in with regulatory mandates and other forces. To put it more simply, we look at the real world that companies are operating in, and try and understand what’s happening and why.

One such thematic we track is Disruptive Technologies, and like all of our thematics, we look at both sides of the coin — who wins and who loses as an emerging theme takes hold and moves into the mainstream.

This article in today’s Wall Street Journal is a perfect example of potentially the losing side of a much talked about part of the Disruptive Technology, driverless cars and its impact on the car insurance business. Clearly, the most recent episode with Tesla’s driverless option is not only adding a brief slowdown in the progression of this technology, but might also drive short-term increases in car insurance premiums. Long-term however, it does raise the issue of what that business could look like 10-15 years down the road. Too far out to act on from our perspective on a thematic investing angle, but something to take not of and monitor.

Car insurers last year hauled in $200 billion of premiums, about a third of all premiums collected by the property-casualty industry. But as much as 80% of the intake could evaporate in coming decades, say some consultants, assuming crucial breakthroughs in driverless technology make driving safer and propel big changes in car ownership.

Source: Driverless Cars Threaten to Crash Insurers’ Earnings – WSJ

About the Author

Chris Broussard
I'm the Co-Founder and President of Tematica Research and editor of Thematic Signals, which aims to uncover confirming data points and items to watch for our list of investing themes. Whether its a news item, video clip, or company commentary, we've included this full list of items literally "ripped from the headlines." I have been involved in financial services marketing and publishing for over 20 years – having held senior level positions with financial publishers, financial services corporations and providing marketing support and consulting services to financial institutions and independent financial advisors. My background in digital marketing, financial services and consumer research provides me with a unique perspective on how to uncover the underlying proof points that are driving the themes our Chief Investment Officer Chris Versace utilizes in our various Tematica publications.

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