Insurers have three to five years to price driverless car policies

Industry experts believe insurers in the US have three to five years to collect the data required to develop pricing for autonomous cars and determine how claims will impact them. Accidents from car usage in the US currently costs over 2% GDP including medical costs and lack of productivity. Driverless cars are expected to significantly lower this cost,and lead to a shift in liability as well as a reduction in sales of personal and commercial auto insurance.

With the promise of reduced congestion, less pollution and fewer accidents, the driverless car faces the immediate questions of customer adoption and regulation.

In the latest episode of Business Insurance In Focus, assistant managing editor Aranya Tomseth takes a look at the status of automated and semi-automated vehicle technology and talks to experts about the liability challenges that lie ahead.