Insuring future automobility: A qualitative discussion of British and Dutch car insurer's responses to connected and automated vehicles

Abstract

Connected and Automated vehicles (CAVs) are transforming road-transport. Within this transformation, motor vehicle insurers are one of the key involved stakeholders. This paper explores car insurers' expectations, challenges and activities around the development of CAVs. It draws on a literature review and 31 semi-structured interviews with insurers and other experts in the United Kingdom and the Netherlands. The analysis confirms challenging, simultaneous local and international, discussions about 1) the shift in liability from drivers to automated driving systems, 2) a commercial conflict over in-vehicle data access and 3) the future of shared mobility. Interviewees anticipate that the outcome of these discussions will affect their underwriting, risks, claims processes, business models, product offerings and competitive strategies. Simultaneously, insurers respond to these challenges and affect them as they move forward, thereby helping shape the regulatory frameworks of future CAV mobility. They do so in various ways, which differ across countries and insurers, yet generally can be classified into three typical activities: (non) participation in pilot-projects, lobbying and learning. The paper concludes with a number of political and scholarly reflections.