This is how autonomous vehicles will change auto insurance

The Global Federation of Insurance Associations (GFIA), which groups together insurance associations from around the world, has produced a document in which it explains how autonomous vehicles will change underwriting, pricing, sales, distribution, and claims management in auto insurance.

Specifically, they focus their public policy and advocacy efforts on four areas:

1. Ensure that the highest safety standards are maintained for all vehicles and, as necessary, update vehicle safety standards to reflect the technology used to operate the vehicles.

2. Determine the coverage of new risks, such as cyber incidents.

3. Ensure access to vehicle data for underwriting, rating, claims, and anti-fraud purposes, as well as to devise more innovative services around the vehicle.

4. Address liability considerations to ensure that claims are made without problems.

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The GFIA has developed a set of guiding principles to help guide discussion with governments and regulators on implications for the insurance market of public policy on autonomous vehicles.

Vehicle safety

Vehicle regulations should include safety standards for the interface between technology, which will operate the vehicle in certain cases, and human, who will operate the vehicle in others.
Vehicle manufacturers must publish a detailed definition of the conditions under which automatic driving is safe. The vehicle must be able to identify when all conditions are met and allow automatic driving only under those conditions.
Vehicle systems must be designed, developed, and maintained over the life of the vehicle to minimize the vulnerabilities and consequences of a cyber incident.
Automatic driving and emergency collision avoidance systems must be designed to maintain the same operating performance for a life of at least 10 years. Vehicle manufacturers must publish the necessary diagnostics to support repair safety and repair safety certification.
Vehicle manufacturers and vehicle or ride-sharing service providers involving automated vehicles must disclose vehicle capabilities and limits to customers. Vehicles must ensure that users understand their obligations before they are able to use the vehicle in automated mode.

Insurance coverage

Insurance regulators should encourage the development of an open and competitive market for coverage of new risks associated with operating a vehicle, such as cyber incidents.
Auto insurers should be able to limit coverage to reasonable use and proper maintenance/upgrades. Automated driving should not be available if safety-critical software updates are not installed.

Vehicle data

Third parties should be able to access vehicle data through an open platform that is not controlled by a single stakeholder model owner. Vehicle data must be available on fair, reasonable, and non-discriminatory terms that allow fair competition between service providers.
In the event of a collision involving an automated vehicle, insurers must have access to sufficient data to establish whether the automated driving system was in control prior to the incident. All crash and emergency systems. Intervention cases should trigger a data transmission.