LONDON, March 17 The British motor insurance
market will shrink by 21 percent by 2040 due to the introduction
of self-driving cars, the Bank of England said in a report on
Self-driving vehicles will account for 80 percent of new
sales by 2040, the central bank said in its quarterly bulletin,
based on a survey of technology and insurance specialists.
The change would lead to "a reduction in claims frequency as
safer automonous vehicles make up an increasing proportion (of
total cars licenced in Britain)", the report said.
(Reporting by Carolyn Cohn; editing by David Clarke)