One of the most significant challenges is the unbundling of hardware and software. Caterpillar not only sells self-driving machines but also separately sells retrofit systems, including hardware, software and term licenses. This transforms one-time equipment sales into an ongoing service model, effectively transforming Caterpillar into a manufacturer and technology provider. For insurers, this tiered service model introduces a new set of responsibilities: software failures, remote control failures, cybersecurity breaches and service level disputes.
