Advertise on Reinsurance News

Menu

Reinsurance News

President of Travelers calls for auto industry involvement on automation

17th July 2018 - Author: Charlie Wood

The Executive Vice President and President of Personal Insurance at American insurer Travelers, Michael Klein, has highlighted the important role the insurance industry must play in the development of policies surrounding autonomous vehicles.

Travelers logo“With the increasing adoption of semi-autonomous vehicles and the potential for fully autonomous vehicles, several policy-related questions and challenges are beginning to emerge,” stated Klein.

“It’s important that the insurance industry play a central role in policymaking discussions to develop a uniform legal and regulatory framework for autonomous vehicles. Ensuring that a clear risk transfer mechanism is in place will help facilitate the development of autonomous vehicles and the improved safety we expect they will bring to our roads.”

The statement follows the release of a white paper by The Travelers Institute, the public policy division of The Travelers Companies, titled “Insuring Autonomy: How auto insurance can adapt to changing risks,” at the 2018 Automated Vehicles Symposium.

The paper contained Travelers’ assessment of the current personal and commercial auto insurance structure and how that is likely to translate over into a more automated landscape, in terms of resolving claims and providing fair compensation to accident victims.

While research suggests fewer accidents are to be expected as such technologies are adopted, it’s expected that collisions that do occur will likely result in higher repair costs and lead to more complex questions over liability, victim compensation and data collection.

Travelers point to the implementation to a model state law relating to autonomous vehicle insurance – that builds on the current state-based regulatory and oversight structure – as a potential way forward.

Additionally, it believes government should establish strong cybersecurity requirements for autonomous vehicles, including appropriate data-sharing protocols, and require vehicle owners – including personal, ride-sharing and company-owned vehicles – to purchase and maintain adequate insurance.

Klein concluded, “Travelers has been a longtime leader and innovator in both personal and commercial auto insurance and would support the creation of a coalition of non-government stakeholders to make recommendations on insurance-related autonomous vehicle issues.”

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
Lloyd’s insurers to experience strong H1 earnings growth: J.P. Morgan

Lloyd’s insurers are expected to experience strong earnings growth for the H1 season, driven by good underwriting results and low...

Close