INSURANCE
The quiet hum of a handful of Tesla Model Ys navigating the streets of Austin has marked a pivotal, if tentative, step into a new era of mobility. The launch of Tesla’ s robotaxi service, initially a limited trial for a select few, has sent ripples far beyond the Texas capital, forcing the insurance industry to confront a future where the driver is no longer human, and the very concept of risk is being rewritten.
While rivals like Alphabet’ s Waymo have already clocked millions of commercial miles, the entry of Tesla – a brand synonymous with disruption – has intensified the spotlight on the autonomous ride-hailing revolution. For insurers, this is more than a technological horse race; it’ s a fundamental challenge to a century-old business model built on underwriting the frailties of human drivers.
A market in hyperdrive and a tale of two techs The global robotaxi market is on an explosive growth trajectory. Forecasts indicate a surge from just over US $ 2bn in 2025 to a staggering US $ 17.19bn by 2029, with some projections for the broader autonomous ride-hailing market topping US $ 480bn by 2035. This exponential growth is fueled by the promise of reduced traffic
118 August 2025