The International Underwriting Association (IUA), representing insurance and reinsurance companies in London, has stated that London Market insurers will be essential in advancing new air mobility technologies in the coming years.
The IUA emphasised the importance of a thorough certification process that ensures safety and provides access to data, allowing underwriters to accurately evaluate risks and liabilities.
These comments were made in the IUA’s official response to the Law Commission’s public review of autonomous flight regulations.
Currently, aviation drones are widely utilised, but their development is expected to accelerate.
Larger drones will likely be used for cargo delivery, and vertical take-off and landing vehicles are anticipated to serve as air taxis, carrying passengers.
Tom Hughes, Senior Underwriting and Claims Executive at the IUA, commented: “The London Market has always provided a home for new, complex risks and very large exposures. Insures are already providing cover for new aircraft and have recognised an opportunity to support the testing and roll-out of new technologies.”
“It is difficult to know how fast and how quickly the market will develop, but given the levels of investment being seen in the UK and globally it is difficult to believe that advanced air mobility will not be a significant part of our transport network in the future.”
In its response to the Law Commission, the International Underwriting Association (IUA) referenced the recent Automated Vehicles Act as a framework for determining liability based on whether a vehicle is operated by a human or autonomously.
The IUA noted that discussions about how insurers can access data to establish liability in driverless car accidents could be similarly applied to aviation.
The IUA also called on lawmakers to address safety regulations concerning the use of batteries and cybersecurity systems in advanced air mobility technologies.
They highlighted the need to consider the risks of increasingly congested airspace and the potential effects on nuisance and privacy rights, as these new technologies are expected to operate much closer to people than traditional aircraft.
Hughes said: “Focusing on safety is fundamental to ensure the integrity and longevity of the advanced air mobility market. There is a substantial risk that early accidents could deter insurers from engaging in the sector and risk denting public confidence in the technology.”
