Auto-insurance industry will play critical role as lawmakers, regulators and society adjust to innovations in transportation, including the shift towards self- driving, Travelers – an insurance firm has said.
A recent report on auto insurance by Travelers, hinted that any proposed legal and regulatory framework governing self-driving vehicles should include provisions specifically related to auto insurance, which should continue to be the primary compensation method for claimants.
The report stressed coordination among local, state and federal lawmakers and regulators, who should seek input from all relevant constituents to ensure a consistent, rational regulatory system that addresses all potential issues. However, vehicle owners should also be required to purchase and maintain adequate insurance for their vehicles – including sufficient coverage for the inherently more expensive technology – whether they are personal, ride-hailing or company-owned vehicles.
The report further noted that there should be the development of a model state law relating to self-driving vehicle insurance that builds on the current state-based regulatory and oversight structure for auto insurance, as well as representation for the insurance industry in policymaking and stakeholder forums.
“The autonomous vehicle sector has seen significant advancements in recent years, but a uniform insurance framework, as outlined in our latest paper, is a critical component to the future of transportation,” said Joan Woodward, President of the Travelers Institute and Executive Vice President of Public Policy at Travelers.