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The impact of driverless cars could trigger a trillion dollar change in the global economy according to CEO of insurance company The Hollard Australia Group Richard Enthoven.

According to a report in the Australian Financial Review Enthoven believes there will be a significant drop in car ownership in the next decade with accident rates almost set to diminish entirely.

"Driverless cars will reduce accidents by 90 percent, which will hit the general insurance industry hard given that half its revenue pays for smash repairs."

Enthoven believes that as consumers will increasingly opt for services such as Uber, insurance companies should tap into big data to determine its purpose on the future.

"People will use their phones, as they do for Uber, to take a trip to the city which will cost a fifth of the current price because a human won't be driving.

"A car will show up, take them to where they want to go and they'll get out without worrying about parking.

"Currently, a third of drivers in the CBD are looking for a parking space at any one time."

The Australian Financial Review also reports that Enthoven is pushing the launch of a pay-by-the-kilometre car insurance model.

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