Driverless cars come with benefits but manufacturers and insurers should be keeping a close eye

23 November 2016

  • Share

Radhika Chadwick, Digital Government Partner at EY, comments:

“Today’s announcement will likely spur on activity in the field, but insurers and manufacturers will be keeping a close eye on how the market will evolve. Close collaboration between car makers and government will play a crucial role in unlocking the full potential of this technology.

“Data generated from driverless cars can help to optimise infrastructure investment and enable safe, efficient operations and maintenance. Sharing of this data can also contribute to a digital, multi-modal approach to the UK’s national infrastructure network which can lead to another whole set of benefits. These include support for long-term planning of road investment, greater productivity from reduced commute time for road users, and improved connections between different transport services.”

“However, driverless cars will directly impact the volume of motor insurance claims. For insurers this poses a fundamental challenge to their pricing and products; if accidents can be minimised or almost completely removed, the question is: what are you insuring against?”