Technology is changing the way we interact with the world, whether it is newer and smarter vehicles, a greater ease of communication, or an increase in the data available to help companies better target their marketing towards consumers. The rewards of these technological leaps, however, also come with some rather large risks, or at the very least create issues that have yet to be addressed.

The auto insurance industry is as vulnerable to these risks as any other industry. However, here are three major trends in the auto insurance industry likely to be of concern in the coming months. Technology has the potential to disrupt the insurance industry in a short period of time and companies must determine how best to adapt to the ever-changing technological landscape and use it to their advantage.

Automated vehicle technology

Automated driving is a broad concept, encompassing a myriad of technologies, some currently in production and others still in the imaginations of the world's top creative engineers. The concept of autonomous cars is constantly evolving and has not reached full automation. However, further development of automated functionalities is inevitable.