Warren Buffett says that self-driving cars will be bad for insurance companies

Warren Buffett — chairman and CEO of global conglomerate Berkshire Hathaway and one of the wealthiest people in the world — hauls in a good deal of revenue from Berkshire-owned auto insurer Geico. But in the long term, Buffett thinks, insurers like Geico are going to be bringing in less money as self-driving cars start to take over.

Appearing on CNBC this morning, Buffett had this to say when asked if autonomous driving would be “an issue” for the auto insurance industry:

“The answer is yes. I think it’s a long way off, but there’s no question. Anything that makes cars safer is very pro-social, and it’s bad for the auto insurance industry. But nevertheless, the auto insurance industry has always worked on making cars safer. I mean, they’ve led the way on things like seat belts and all that. But if there are no accidents, then no need for insurance. And I think there will be a big reduction in accidents over a longer period of time. And of course there already has — cars have been made way, way safer, but now when you start making the driver safer, that would be a big, big jump, and that will happen some day, and when it happens there will be a lot less auto insurance written.”

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