The deal with Liberty Mutual shows how US agencies are starting to realize that they must adjust their prices as cars get safer with advents in self-driving tech.

Insurers like Cincinnati Financial, Mercury General, and Travelers have noted in SEC filings that driverless cars could threaten their business models, according to a 2015 Bank of America and Merrill Lynch report.

The personal auto insurance sector could shrink to 40% of its current size within 25 years as cars become safer with autonomous tech, according to a report by the global accounting firm KPMG.

This shows why the value of Tesla is far greater than GM. Tesla can not only leverage it's auto technology, it can combine this with data and context. In this case it is partnering with an insurer but there is no reason it couldn't do so with one of the digital giants.

See Gartner's forecast that "five of the top seven digital giants will wilfully “self-disrupt” to create their next leadership opportunity and you- the insurer-  have cause for concern unless you anticipate these dynamic forces.

See "Which digital giant will disrupt you?"

Tesla are.,of course, not the only auto manufacturers launching safer, electric and soon to be autonomous cars. When you combine these with subscription services you have a tidal wave of disruption heading for insurers.

See "Fast on the wheels of Volvo, Porsche takes to the road with subscription service"