Travelers Outlines Framework for Autonomous Vehicle Insurance
July 10 2018 - 4:45PM
Business Wire
Releases white paper at the 2018 Automated
Vehicles Symposium
Provides public policy recommendations to adapt
auto insurance for autonomous vehicles
The Travelers Institute, the public policy division of The
Travelers Companies, Inc. (NYSE: TRV), today released a white
paper, “Insuring Autonomy: How auto insurance can adapt to changing
risks,” at the 2018 Automated Vehicles Symposium. The white paper
presents Travelers’ assessment of the existing auto insurance
structure, both personal and commercial, in the context of
resolving claims and providing fair compensation to accident
victims as vehicles become more autonomous.
“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,” said Michael
Klein, Executive Vice President and President, Personal Insurance
at Travelers. “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.”
While research suggests the adoption of autonomous driving
technology will lead to fewer accidents, collisions that do occur
will likely result in costlier repairs and raise difficult
questions relating to driver and manufacturer liability, victim
compensation and data collection. The general risks that come with
vehicle ownership, autonomous or not, will remain, including risks
related to weather and theft.
Among other things, the white paper offers the following
recommendations to facilitate an effective auto insurance
system:
- Develop a model state law relating to
autonomous vehicle insurance that builds on the current state-based
regulatory and oversight structure.
- Require vehicle owners — including
personal, ride-sharing and company-owned vehicles — to purchase and
maintain adequate insurance.
- Provide for sufficient coverage to
account for the more expensive technology used in autonomous
vehicles.
- Establish strong cybersecurity
requirements for autonomous vehicles, including appropriate
data-sharing protocols.
- Utilize insurers’ extensive consumer
communication programs to help educate customers and the public on
autonomous vehicle safety.
- Ensure representation of the insurance
industry in policymaking and stakeholder forums.
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.”
To download a copy of the white paper, please visit the
Travelers Institute website.
About the Travelers InstituteThe Travelers
Institute, the public policy division of The Travelers Companies,
Inc., engages in discussion and analysis of public policy topics of
importance to the insurance marketplace and to the financial
services industry more broadly. The Travelers Institute draws upon
the industry expertise of Travelers’ senior management, as well as
the technical expertise of many of Travelers’ underwriters, risk
managers and other experts to provide information, analysis and
solutions to public policymakers and regulators.
About TravelersThe Travelers Companies, Inc. (NYSE: TRV)
is a leading provider of property casualty insurance for auto, home
and business. A component of the Dow Jones Industrial Average,
Travelers has approximately 30,000 employees and generated revenues
of approximately $29 billion in 2017. For more information, visit
www.travelers.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180710006018/en/
Media:The Travelers Companies, Inc.Matt Bordonaro,
860-277-7014mbordona@travelers.comorCourtney Garro,
860-277-8719cgarro@travelers.com
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