Self-driving car fatality threatens insurers
Wednesday, 03 28 2018, Category: Technology, Country: World
As federal investigators begin to examine a pedestrian fatality involving a self-driving Uber Technologies, Inc. car this week, America’s car insurers are watching closely.
Car insurers haul in roughly $230 billion of premiums a year, but much of that intake could evaporate in coming decades, say some consultants, assuming crucial breakthroughs in driverless technology that would eliminate the many wrecks caused by human error.
The potential hit to their bottom lines has property-casualty insurers in an arms race to figure out how they can design policies and price the risk of the vehicles that technology firms, such as Uber and Alphabet, Inc., are seeking to deploy in huge numbers, according to industry brokers, executives and trade groups.
It isn’t clear that the death this week in Arizona would be an example of how liability would shake out for the industry. A person familiar with Uber said the firm’s test vehicles are insured through a commercial-insurance policy for a maximum of $5 million per accident. The insurer or insurers couldn’t immediately be confirmed.
Source: Manila Bulletin