Insurers are struggling to play catch up with auto manufacturers who are making great strides in the development of autonomous vehicles.
Robert Hartwig, president of the industry trade group Insurance Information Institute, told reporters that currently, carriers do not have a way of distinguishing whether they are insuring a self-driving car or not.
He said the insurance claims process for cars using self-driving systems generally works the same way for cars that do not have them. In self-driving cars, the question lies in determining whether the driver or software is at fault in case of an accident. But in practice, this means that the insurer will pay the claim, and then charge it either to the manufacturer or another insurer to recover its payment.
Regulators are also still lagging behind, with fewer than 12 states having enacted laws that address the use of self-driving cars, the National Conference of State Legislatures said.
Hartwig said it is still too early to tell how the technology will affect insurance rates. He explained that there is still a lack of actuarial data to determine whether self-driving technology affects the frequency and severity of crashes. Historically, it takes time for insurers to gather information on new technology and adjust rates based on their impact on the auto industry.
Still, the fast pace of development on this front may make it challenging for insurers to apply data from the cars to insurance premiums, Hilary Rowen, a lawyer with San Francisco based
Sedgwick pointed out. Self-driving technology will be “disruptive” to the insurance industry, she added.
Liability laws are also expected to evolve with so as not to hinder growth in autonomous vehicles, Hartwig noted.
