Allstate CEO: Auto Industry on the Brink of a Revolution

The CEO of one of the nation’s largest insurance providers, Allstate, said the transportation industry is on the verge of dramatic changes – and self-driving vehicles are just “the tip of the iceberg.”

CEO Tom Wilson discussed why his company is betting on innovation during an interview with the FOX Business Network’s Dagen McDowell at the 2017 Consumer Electronics Show in Las Vegas.

“The entire [transportation] system is going to change and we have to change with it… so we can serve our customers,” he said.

Car innovation is the “single biggest opportunity that exists to raise household incomes,” Wilson said.

Allstate created a company called Arity that collects driver data from a vehicle to determine driver risk.

Wilson said Arity will make insurance prices more accurate, improve the driving experience and help lower the cost of driving.

“A 20 percent improvement in the cost and effectiveness in the transportation system is worth 5 percent improvement in personal income in America,” he said.

Wilson says Allstate currently has over 1 million cars connected and collects over 700 million miles a month of data.