Autonomous Cars: Navigating the New Claims Terrain

9

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Howden Re’s "Shaping the Future of Risk" report highlights that the surge in autonomous vehicle (AV) adoption is likely to lead to more intricate litigation scenarios. The expected litigation will ensnare vehicle manufacturers, software developers, hardware suppliers, and mapping service providers in various legal battles.

The report underscores that the growing prevalence of AVs might influence losses within motor liability insurance segments. AV technology could shift liability from individuals operating vehicles to the technology powering these autonomous systems, necessitating a shift towards product liability insurance over traditional motor insurance.

“Identifying the faulty component in a vehicle involved in an incident will be a challenging task,” Howden Re states. “Court outcomes in these cases could significantly sway motor liability insurance strategies. Depending on verdicts, this arena might demand stronger reserving strategies to accommodate potential claim variances.”

Motor liability currently constitutes as much as 40% of global property and casualty premiums, and projections suggest that by 2030, around 50% of new vehicles will be electric. Additionally, most new vehicles are expected to possess considerable technological connectivity, with some touting self-driving capabilities.

As AI-driven systems aim to replace human drivers in an effort to reduce accidents caused by human oversight, this will introduce a tentative period where both human-driven and autonomous vehicles coexist. This coexistence will inevitably complicate accident causality assessments and claims filing procedures.

“The artificial intelligence governing AVs operates on assumptions that might occasionally be flawed. Therefore, AVs complicate the accident and claims landscape by introducing new challenges in assigning fault,” Howden Re elaborates. “In mixed environments where human-driven and autonomous vehicles share the road, discerning whether a crash results from technological failure or human error becomes intricate.”

Both passengers in AVs and drivers of other involved vehicles might seek compensation from AV manufacturers in the event of an accident, potentially heightening overall claim costs.

Published:Tuesday, 10th Sep 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

TAL's Health Sense Plus Now Covers Income Protection Policies

27 Jan 2026: Paige Estritori

In a strategic move to enhance the value of its offerings, TAL has announced the expansion of its Health Sense Plus program to encompass income protection insurance. This initiative, effective from 8 August 2025, aims to incentivise proactive health management among policyholders by providing premium discounts. - read more

Rising Mental Health Claims Reshape Australia's Insurance Landscape

27 Jan 2026: Paige Estritori

Australia's insurance sector is experiencing a significant shift as mental health conditions become the predominant cause of total and permanent disability (TPD) claims. Recent data from the Council of Australian Life Insurers (CALI) indicates that mental health issues now account for nearly one-third of all TPD claims, marking a substantial change in the industry's claim patterns. - read more

APRA Calls for Reforms in Income Protection Insurance Sector

27 Jan 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has raised concerns about the sustainability of income protection insurance, following industry losses amounting to $2.5 billion over five years. APRA has urged life insurers to implement reforms to enhance the viability of these products and ensure they continue to meet policyholders' needs. - read more

TAL's Health Sense Plus Now Covers Income Protection Policies

19 Jan 2026: Paige Estritori

In a significant development for policyholders, TAL has expanded its Health Sense Plus program to encompass income protection (IP) policies. This initiative, effective from August 8, 2025, aims to incentivise proactive health management by offering premium discounts to clients who engage in preventative health checks. - read more

New Legislation Prohibits Life Insurers from Using Genetic Test Results

19 Jan 2026: Paige Estritori

The Australian government has enacted legislation prohibiting life insurers from using the results of genetic tests to refuse coverage or increase premiums. This landmark decision aims to eliminate genetic discrimination and encourage individuals to undergo potentially life-saving genetic testing without fear of financial repercussions. - read more

Calls for Super Funds to Accelerate Mental Health Insurance Claims Processing

11 Jan 2026: Paige Estritori

Consumer advocates are raising concerns over significant delays in processing mental health-related insurance claims by Australian superannuation funds. As mental health conditions become a leading cause of total and permanent disability (TPD) claims, the efficiency of claim processing has come under scrutiny. - read more

Click for more Insurance News