Automated Vehicles Research Report

Automated Vehicles: Implications for the Insurance Industry in Canada

Semi-automated vehicles have begun to replace conventional cars and trucks on Canadian roads. As conventional vehicles share the roads with semi-automated vehicles (sometimes referred to as autonomous cars) and the first driverless cars, the challenge for the insurance industry over the next 10 years will involve determining who is responsible for collisions.

Automated Vehicles: Implications for the Insurance Industry in Canada is an important report that assesses the developments of automated vehicles on Canadian roads within the next 5-10 years, and raises many questions for the insurance industry:

• Will vehicles have on-board devices to identify whether or not the vehicle’s technology was engaged at the time of a collision?
• Will insurance companies be allowed to access this information?
• How will insurance companies recover costs when automakers are found to be at fault?
• How can property and casualty insurers reduce their risk of loss?
• How should costs be shared when driver errors and vehicle automation systems failure both contribute to a collision?

As the frequency of collisions resulting in serious injuries and vehicle damage decline for new, semi-automated and self-driving vehicles, this will be offset by the expected higher cost of repairs for vehicles that experience collisions. As a result, the impact of vehicle automation on insurance claims costs and industry revenues will only begin to emerge over the next 10 years.

It is important for the insurance industry to begin now to prepare for the extensive changes automated vehicles is expected to ultimately bring for the industry.

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Since its launch, our report has gained much attention and interest in the media. Read these articles to gain even more insight about the insurance and road safety implications of automated vehicles in Canada:

Date Publication Article
May 5, 2016 Canadian Underwriter Insurance Institute of Canada issues “call to action” on driverless vehicles
May 6, 2016 Canadian Insurance Top Broker Critical time for insurance industry to get involved with automated vehicles
May 25, 2016 Canadian Underwriter Insurance industry ‘has to be ready’ for automated vehicles: Insurance Institute speaker
May 26, 2016 Insurance Business Canada Insurers have five years to adapt to self-driving cars
May 27, 2016 Insurance Business Canada Self-driving car experts question manufacturer liability promise
June 23, 2016 Auto Service World Insurance Institute releases report on automated vehicles
June 27, 2016 Collision Repair Mag Insurance Institute report examines challenges of insuring autonomous vehicles
June 27, 2016  High Risk Insurance Pros Canada: Insurance Institute releases report on automated vehicles 
June 28, 2016  Telematics Wire  Automated Vehicles: Implications for the insurance industry in Canada 
July 5, 2016    Insurance Business Canada    Accident shows insurers have much to learn about self-driving cars
July 5, 2016 Driving.ca Tesla's recent self-driving accident may pit automaker versus insurance company
July 5, 2016 BMW Blog Will Tesla’s Autopilot accident stall autonomous progress?
July 11, 2016  Thompson's World Insurance News  Vehicle automation presents challenges (PDF)
September 25, 2016
Toronto Sun
Insurance companies take cautious approach to driverless cars
September 26, 2016
Insurance Business Canada
Industry to welcome driverless cars with cautious optimism: IBC 

Keep the conversation going on Twitter at #automatedishere.

If you have any questions or comments about the automated vehicles report, contact us at iicmail@insuranceinsitute.ca.