Autonomous Cars: Navigating the New Claims Terrain

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
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

What the New NSW Disclosure Rules Mean for Strata Cover

09 Sep 2026: Paige Estritori

The latest phase of New South Wales strata reform has brought strata insurance disclosure back into practical focus, moving the issue from policy debate to renewal-season reality for owners corporations. The changes are designed to make it clearer when a strata managing agent, broker, insurer or related party receives a commission, fee or other financial benefit connected with arranging insurance. - read more

What a Steadier Life Insurance Market Means for Employers

09 Sep 2026: Paige Estritori

Fresh life insurance performance data from APRA points to a market that is steadier than the disrupted conditions seen in recent years, but not one where employers can afford to be passive. For CFOs, HR leaders and directors, the message is less about a single quarterly result and more about the operating environment behind corporate life insurance pricing, claims service and product design. - read more

Why NSW Levy Reform Matters for Trade Businesses

09 Sep 2026: Paige Estritori

A fresh push to reform how NSW funds emergency services has put insurance affordability back in the spotlight, especially for small businesses that already feel every increase at renewal time. The issue centres on the Emergency Services Levy, which is applied through many insurance policies and has long been criticised by parts of the insurance sector as a disincentive to maintaining adequate cover. - read more

New APRA rules put insurer systems under the spotlight

09 Sep 2026: Paige Estritori

Australia’s tougher operational risk regime is sharpening the focus on how life insurers manage the systems, partners and processes that sit behind every policy. APRA’s CPS 230 standard requires regulated insurers to identify critical operations, set clear disruption tolerances and strengthen oversight of material service providers. For customers, this is not just a back-office compliance story. - read more

Why Claims Handling Scrutiny Matters for Business Owners

09 Sep 2026: Paige Estritori

Fresh compliance attention on life insurance claims handling is a timely reminder that cover is only valuable if it can respond clearly and efficiently when a business is under pressure. Recent industry monitoring has again highlighted familiar issues for life insurers, including claim delays, communication gaps, repeated evidence requests and the need for more consistent support where customers are vulnerable or dealing with complex medical events. - read more

Click for more Insurance News