Autonomous Cars: Navigating the New Claims Terrain
Autonomous Cars: Navigating the New Claims Terrain
9
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.
The rapid evolution of automobile technology, particularly in autonomous vehicles, is poised to reshape the insurance landscape significantly, according to insights from Howden Re.
Reinsurers need to anticipate a more complex claims environment that requires advanced strategies to effectively manage the potential complexities.
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.
Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more
In a significant development for policyholders, TAL has expanded its Health Sense Plus program to encompass income protection (IP) policies. This initiative, effective from August 8, 2025, aims to incentivise proactive health management by offering premium discounts to clients who engage in preventative health checks. - read more
In response to escalating global shipping challenges, leading broker Marsh and Lloyd's underwriter Tokio Marine Kiln have launched a pioneering business interruption insurance specifically designed for ports. This innovative product aims to mitigate the financial impact of trade disruptions caused by various factors, including geopolitical tensions and operational strikes. - read more
In a significant move within the Australian insurance sector, Allianz Australia has successfully completed the acquisition of RAA Insurance for $642 million. This strategic acquisition, approved by the competition regulator on June 12, 2025, marks a substantial expansion of Allianz's footprint in the South Australian market. - read more
The Australian Parliament has initiated a comprehensive inquiry into the provision, regulation, and pricing of modern insurance products for small businesses and not-for-profit organisations. Announced on October 29, 2025, this inquiry aims to address critical issues affecting the insurance landscape for small enterprises across the nation. - read more
Private health insurance is an essential consideration for many Australians. It provides peace of mind, knowing that you and your family have access to the best possible healthcare when needed. - read more
Finding the right health insurance coverage is a critical concern for Australian seniors, who often face the dual challenge of managing chronic health conditions and maintaining financial stability in retirement. As the cost of healthcare continues to rise, the importance of securing an affordable health cover that still meets their needs cannot be overstated. - read more
With healthcare being a critical aspect of every family's well-being in Australia, securing the right family health insurance is not just a necessity but a responsibility. Recognizing the importance of this safety net is the first step towards safeguarding the future health needs of your loved ones. Balancing comprehensive coverage against affordable premiums can seem overwhelming with a multitude of plans available. - read more
Health insurance is a critical part of maintaining your well-being and financial stability. In Australia, understanding the basics of health insurance can help you make informed decisions that protect you during unforeseen medical events. - read more
Embarking on the journey of understanding health insurance is a pivotal stride for young Australians. It's a proactive step that embodies responsibility for one's well-being and financial foresight. Health insurance can often seem like a complex affair reserved for a future self, but grappling with its intricacies early can be both economically savvy and health-conscious. - read more
Knowledgebase
Subrogation: The process by which an insurance company seeks to recover the amount paid to the policyholder from a third party responsible for the loss.
