Insurers could be made ‘irrelevant’ by driverless cars

Post reports that “Insurers could face becoming “irrelevant” in the age of driverless cars according to a survey of drivers” – see article here.

The rationale behind this seems to be that, according to a LexisNexis study, a significant proportion of drivers expect their cover to become cheaper (or that they may not need insurance at all) once driverless cars become mainstream and, as a result, driving safety improves.

The UK government’s current consultation on insurance arrangements for fully automated driving (open until 9 September) invites comment on the suggestion that some of the issues surrounding motor insurance and driverless technology could be addressed by the incorporation of product liability insurance. While changes in the regulatory framework will clearly be needed BLM’s view is that the government’s broader objectives here will best be met by more bespoke innovation, not by a marriage of convenience which would in reality be problematic to achieve. Whatever the challenges may be it seems premature to suggest that there might be no place for motor insurance in the world of the driverless car – whatever the public perception may be.


West_D-9-web

Daniel West, Associate, BLM

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s