LOUISVILLE, Ky.--(BUSINESS WIRE)--The Travelers Companies, Inc. (NYSE: TRV), announced that Michael Klein, Executive Vice President and President, Personal Insurance, will participate today in the Republican Governors Association’s Corporate Policy Summit in Louisville, Kentucky, to share the company’s recommended framework for autonomous vehicle insurance. Klein will discuss the company’s assessment of the existing auto insurance structure, both personal and commercial, in the context of resolving claims and providing fair compensation to accident victims as vehicles become more autonomous.
“There are several policy-related questions and challenges that need to be addressed for the eventual use of fully autonomous vehicles to become a reality,” said Klein. “The insurance industry can play a central role in policymaking discussions to develop a uniform legal and regulatory framework for autonomous vehicles. Ensuring that a clear risk transfer mechanism is in place will help facilitate the development of autonomous vehicles and the improved safety we expect they will bring to our roads.”
While research suggests the adoption of autonomous driving technology will lead to fewer accidents, collisions that do occur will likely result in costlier repairs and raise difficult questions relating to driver and manufacturer liability, victim compensation and data collection. The general risks that come with vehicle ownership — autonomous or not — will remain, including those related to weather and theft, and an insurance structure will still be needed.
Travelers initially disclosed its suggested framework for autonomous vehicle insurance at the 2018 Automated Vehicles Symposium in San Francisco, where Klein participated in a roundtable discussion with United States Secretary of Transportation Elaine Chao and leading insurance, ride-sharing and auto industry executives. The company’s public policy division, the Travelers Institute, also published a white paper, “Insuring Autonomy: How auto insurance can adapt to changing risks,” that outlines its proposal for facilitating an effective auto insurance system that can support the rise of semi- and fully autonomous vehicles, including:
- Developing a model state law relating to autonomous vehicle insurance that builds on the current state-based regulatory and oversight structure.
- Requiring vehicle owners — including personal, ride-sharing and company-owned vehicles — to purchase and maintain adequate insurance.
- Providing for sufficient coverage to account for the more expensive technology used in autonomous vehicles.
- Establishing strong cybersecurity requirements for autonomous vehicles, including appropriate data-sharing protocols.
- Utilizing insurers’ extensive consumer communication programs to help educate customers and the public on autonomous vehicle safety.
- Ensuring representation of the insurance industry in policymaking and stakeholder forums.
Klein added, “Travelers has been a longtime leader and innovator in both personal and commercial auto insurance and would support the creation of a coalition of non-government stakeholders to make recommendations on insurance-related autonomous vehicle issues.”
The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has approximately 30,000 employees and generated revenues of approximately $30 billion in 2018. For more information, visit www.travelers.com.