Georgia Passes Legislation Allowing Autonomous Vehicles on the Road
Posted on Apr 4, 2017
In its recently-concluded legislative session, the Georgia General Assembly passed a bill that would allow autonomous vehicles on the road. The law exempts driverless vehicles from the requirement to be operated by a licensed driver as long as the vehicle is fully autonomous and the automated driving system is engaged; indeed, under the new law, such vehicles may be operated on the roads without a human driver in the vehicle at all. However, the bill also requires that, at least for the present, the minimum liability insurance coverage for driverless vehicles be 250% of the minimum limits...
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Concerns About Losses in the Auto Insurance Market
Posted on Apr 4, 2017
According to a recent Fitch Ratings report, the auto insurance industry experienced significant losses last year that outpaced premium increases. Although some carriers were able to make a profit in the personal auto segment, an increase in insurers’ average combined ratios indicate that the overall market is weakening. Losses may be increasing due to an increase in miles driven, the dangers of distracted driving, and the increasing cost of replacing complex safety features, among other things.
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After Crash, Uber Suspends Autonomous Vehicle Pilot Program
Posted on Mar 27, 2017
Uber has suspended its pilot program for autonomous vehicles after a crash in Tempe, Arizona. At the time of the crash, the car was in self-driving mode, though there was a human driver behind the wheel. The SUV was hit when another vehicle failed to yield, leaving the SUV on its side. Pending an investigation into the crash, Uber’s self-driving program has been suspended in Arizona, Pittsburgh, and San Francisco. With the crash, safety concerns for autonomous vehicles are once again at the forefront of the debate. Although Uber has been aggressively pursuing testing with passengers,...
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American Workers Most Likely To Be Replaced by AI
Posted on Mar 27, 2017
A recent report by PwC puts U.S. workers at the highest risk of being replaced by artificial intelligence over the next 15 years. The report–which covered the U.S., the UK, Germany, and Japan–determined that the risk of replacement affects 38% of U.S. jobs, compared to only 35% of German jobs, 30% of UK jobs, and 21% of Japanese Jobs. According to the report, it is the nature of work done that is creating the higher risk for American jobs. For example, in the financial services sector, many U.S. workers are focused on small-scale domestic retail operations. Many UK workers, by...
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Colorado Senate Passes Autonomous Vehicle Bill
Posted on Mar 24, 2017
The Colorado Senate has passed a bill establishing a general framework for autonomous vehicle regulation. The draft legislation, Senate Bill 213, requires driverless vehicles to be “capable of complying with every state and federal law” applicable to the vehicle. Non-compliant vehicles must coordinate testing with the Colorado Department of Transportation and State Patrol. Opponents of the bill criticized it as lightweight, as there are currently no state and federal laws in existence to which the driverless vehicle must comply. They also note the omission of National Highway...
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Test Driving Mobileye’s Autonomous Vehicle
Posted on Mar 13, 2017
Mobileye, an Israeli tech company, is one of the leading companies in developing autonomous vehicles and was recently purchased by Intel for $15 billion. It provides Advanced Assistance Systems for two dozen international automobile manufacturers, and has its own prototype. This prototype, which is not fully self-driving, has eight cameras and an interior filled with laptop, satellite receivers, and other high-tech devices. In a test drive with a Washington Post journalist, the prototype drove at 50 mph on highways—accelerating, braking, and changing lanes. According to Mobileye’s CEO Ziv...
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Trump Signals Rollback on EPA Vehicle Regulations
Posted on Mar 3, 2017
The Trump administration, in conjunction with new EPA administrator, Scott Pruitt, is expected to begin dismantling regulations on vehicle pollution and other policies related to global warming. Specifically, the administration is expected to rollback regulations governing tailpipe carbon dioxide emissions and to revoke California’s waiver to enforce even stricter tailpipe standards. These policy changes come after a coalition of 17 US auto companies told the administration in two letters to Pruitt that standards under the Obama administration were too technical, burdensome, and costly....
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Tesla Considering All-Inclusive Packages
Posted on Mar 2, 2017
Tesla is now contemplating an all-inclusive package, wherein the price of the car would include insurance and maintenance during the duration of ownership. In fact, Tesla’s Asian customers are offered a package that already covers certain car ownership expenses. Those packages include a customized insurance product that covers Autopilot and maintenance costs. The deals do not exclude insurers—for now, Tesla is looking at external insurance companies to provide the policies.
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DOT Designates 10 Driverless Car Testing Sites
Posted on Feb 22, 2017
The U.S. Department of Transportation has designated ten “proving grounds” to encourage the safe testing of driverless vehicles. These testing areas, which were chosen from a pool of more than sixty applicants, encompass a diverse geographic area, ranging from Pittsburgh to San Diego. The groups operating the sites will collaborate on best practices for the safe testing and operation of autonomous vehicles.
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Britain Proposes New Framework Autonomous Vehicle Insurance
Posted on Feb 16, 2017
The British government has announced that it will consider new regulations to guarantee victims of accidents involving self-driving cars timely compensation in an effort to clear one of the largest obstacles to automated driving technology. Regulators and insurers have grappled with how to determine the ultimate liability for accidents, slowing the roll out of the technology. In an effort to address this issue, Britain will introduce a framework for insurance geared towards the new technology, likely in the form of a single insurance product that will provide coverage for a driver when a...
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Dual Insurance for Driverless Cars?
Posted on Feb 10, 2017
The UK Department for Transport is expected to announce that owners of self-driving cars will be required to take out “two-in-one” insurance policies. These policies would cover the driver if a human is driving the vehicle, and would also cover the car when it is operated in driverless mode. The insurer issuing the policy would then be able to recover costs for claims on driverless accidents from the responsible party, such as the manufacturer. The reasoning behind such “two-in-one” insurance policies is to allow an accident victim to obtain compensation without having to determine whether...
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Plaintiffs’ Attorneys Contend Courts Should Determine Liability for Accidents Involving Driverless Cars
Posted on Feb 9, 2017
A plaintiffs’ attorney group, the American Association for Justice, has issued a report on self-driving cars. The report identifies safety issues arising from development of semi- and fully-autonomous cars, and – not surprisingly – argues that liability for accidents and injuries should be determined in the courts. It opposes some regulatory proposals that would govern driverless cars, including no-fault insurance systems, self-regulation of the auto industry, immunity for manufacturers of autonomous vehicles, and governance through federal rather than state laws.
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What the Banking Industry Expects from Connected Cars
Posted on Feb 9, 2017
The American Banker recently looked at ways in which the connected car might affect not only the roads, but the finance world as well. People might be able to make “truly mobile-payments” as they go through toll booths, visit a drive-through, or stop for gas. Fully autonomous vehicles might even make purchases without human involvement. Customers might also be able to do their banking through the car, perhaps using a voice-activated “smart assistant.” As the sharing economy becomes more predominant, auto financing may need to adjust to keep up with new ownership models. However, the...
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Nevada Becomes Latest State to Address Price Optimization
Posted on Feb 7, 2017
Nevada’s insurance commissioner recently issued a bulletin relating to price optimization. The bulletin reminds property and casualty insurers that their underwriting and rating models must be filed with the division of insurance for approval. This includes models based on credit information or models using a mathematical algorithm. It also specifically includes “any ‘price optimization’ models that an insurer might use to determine the extent to which a selected relativity moves toward the indicated relativity. Such models may not utilize any non-risk-based attributes such as price...
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