Twenty-nine states have enacted legislation related to autonomous vehicles. How will the insurance industry adapt?
The Twists and Turns of Autonomous Vehicles
Autonomous vehicles are a reality that is paving the way for the future of mobility. The California Department of Motor Vehicles deine autonomous technology as “technology that has the capability to drive a vehicle without the active physical control or monitoring by a human operator.” The spectrum of driver-enabled to fully-driverless vehicles fits within five levels of automation.
- Level 1 – Driver Assistance which includes features like adaptive cruise control and lane assist which can be found in almost all cars today.
- Level 2 – Partial Automation which assists in controlling speed and steering. Cars with this technology include the Tesla, Volvo, Audi and Lexus, amongst many others.
- Level 3 – Conditional Automation which are capable of driving themselves under specific conditions like the Audit A8. Due to regualtory guidelines, the system is currently unavailable in the U.S.
- Level 4 – High Automation which are vehicles that can drive themselves without human interaction. These types of vehicles are not yet out on public roads due to legal and regulatory controls.
- Level 5 – Fully automated vehicles which can monitor and manage all road conditions and require no human intervention.
While there is currently no commercial production of a level 5 vehicle, companies like Uber and Waymo are working towards this goal, testing vehicles with human drivers there to take over if needed. Rio Tinto Mining has the most technologically advanced mine with a goal of 130 autonomous trucks in operation and autonomous drill system. Technology is also transforming the farming industry with companies like John Deere and Kubota racing to build autonomous tractors. The US Navy is building a fleet of drone ships to increase current capabilities and extend the reach of manned vessels. So what’s next?
According to the National Conference of State Legislatures (NCSL), more than 41 states hae considered legislation while twenty-nine jurisdictions have enacted legislation (Alabama, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, New York, Nevada, North Carolina, North Dakota, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin and Washington D.C.). In order to provide up-to-date information, NCSL introduced an autonomous vehicles legislative database.
Here are some of the issues that require further discussion:
- The vehicle owner, manufacturer and aftermarket all have a role in the autonomous driving process. How do we determine who is responsible?
- What’s the decision-making process for semi-autonomous, highly autonomous and fully autonomous vehicles when it comes to an object (or person) on the road? Who makes the decision, what criteria and does the outcome meet our moral expectations?
What do autonomous vehicles mean for insurers, agents, brokers and owners? Will it result in growing markets, shrinking markets, more losses or better control? Will ownership of autonomous vehicles lie with individuals or shift to groups (eg, Uber, Waymo)? Let us know your thoughts?
Author: The Surplus Line Association of California