Context
The ABI has published a ‘guest blog’ from law firm DAC Beachcroft about issues for the insurance industry arising out of automated vehicle (AV) data. The blog explores the challenges facing the insurance sector driven by the enormous volumes of data AVs will generate.
Key points to note and next actions
- In discussing a ‘data revolution on wheels’, the article considers the vast amount and variety of data that AVs are likely to create from sources including sensors, cameras, mapping systems, vehicle diagnostics, software logs and communications with surrounding infrastructure.
- These datasets will provide a detailed picture of how a vehicle operates, the decisions it makes and the environment in which it travels. For insurers, the potential value is immense.
- Data will play a critical role throughout the AV ecosystem; manufacturers, regulators and infrastructure providers will rely on and use it for a wide variety of purposes.
- For insurers, data could fundamentally transform claims handling and risk assessment; when an accident occurs involving an AV, the key questions are likely to require an understanding of software performance, sensor inputs, system decisions and vehicle status at the time of the incident.
- The questions asked may well be very different from those asked today. Access to reliable and timely data may, therefore, become essential for determining liability, assessing causation and resolving claims efficiently.
- Under the Automated and Electric Vehicles Act 2018, insurers will be directly liable for the AVs they insure when the incident is caused by the AV driving itself. Without access to the necessary post-collision dataset, insurers may find themselves attempting to investigate highly technical incidents with only a partial view of what happened.
- Automated Passenger Services (APS) are already being tested, with passenger operations expected to go live for passengers in early 2027. The full implementation of the Automated Vehicles Act is currently scheduled for before the end of next year.