The automotive industry is going through a period of change that has massive implications for insurers, says Mariel Devesa, head of product innovation at Farmers Insurance. Changes to personal lines, including substantial declines in auto insurance premiums, could come much more quickly than insurers think if they don’t consider new ways to create value for consumers, she adds.

For example, though last year was a peak year for auto sales, that trend is unlikely to continue, Devesa says. The millennial generation -- defined as those between the ages of 18 and 34 as of 2015 -- is larger than the baby boomers, and their tastes and expectations are decidedly different. Drivers are getting licenses later in life and are embracing ridesharing, an industry that didn’t even exist just a few years ago.

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