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While autonomous vehicles are yet to hit the mainstream, it’s only a matter of time before they become commonplace and many brokers are already asking questions about how both they and their clients will be impacted.
Marcus Saw, an insurance lawyer with Colin Biggers & Paisley, says one potential area of interest is the notion that liability may be passed away from the vehicle owner and instead on to the manufacturer.
“The advent of autonomous vehicles has the potential to transfer much of the risk of the vehicle’s operation away from the human driver,” he told Insurance Business. “The extent to which that is the case will depend upon the level of automation.”
The implication for clients, he says, could be significantly lower premiums.
“It is not inconceivable that the level of cover required for commercial consumers with fleets of vehicles could be substantially reduced, to the extent that it can confidently be said that the risk of accidents falls to the manufacturer of the vehicle as opposed to the drivers themselves,” he said.
However, Saw also noted that this could lead car manufacturers to become more closely involved with vehicle insurance and even offer coverage at point of sale.
“It is possible to imagine third party or comprehensive insurance more commonly being sold through the vehicle manufacturer at the point of the vehicle’s sale in circumstances where the risk of accidents is likely to be tied more closely to the adequacy of the vehicle’s design and construction,” he explained.
When asked what else insurance brokers should be particularly aware of as Australia inches closer to automated vehicles, Saw pointed to regulation and legislation as most important.
“As an area that will undoubtedly be the subject of increased regulation and legal development, brokers and insurers would be well served by keeping abreast of changes to the laws affecting driverless (and human operated) vehicles to ensure that the risks and exposures associated with their operation are well understood,” he said.
