The Travelers Institute, the public policy division of The Travelers Companies, Inc. (NYSE: TRV), today released the latest version of its position paper “Insuring Autonomy: How Auto Insurance Will Lead Through Changing Risks.” The paper, initially published in 2018, presents the company’s assessment of how the existing auto insurance structure can be leveraged for autonomous vehicles.
The updated report reaffirms Travelers’ belief that the auto insurance industry will play a critical role as lawmakers, regulators and society adjust to innovations in transportation. The paper also provides specific recommendations that can help establish a framework for insuring autonomous vehicles as their use continues to increase.
The position paper and the status of autonomous vehicles will be discussed during a webinar hosted by the Travelers Institute and the American Property Casualty Insurance Association on Wednesday, Jan. 27, at 1 p.m. ET.
Joan Woodward, President of the Travelers Institute and Executive Vice President of Public Policy at Travelers, will moderate the event featuring Michael Klein, Executive Vice President and President of Personal Insurance at Travelers. The webinar is free and open to the public. Anyone interested in registering can sign up here.
“The autonomous vehicle sector has seen significant advancements in recent years, but a uniform insurance framework, as outlined in our latest paper, is a critical component to the future of transportation,” said Woodward. “Our risk management expertise and deep understanding of compensation systems will add significant value in creating the structure needed to widely adopt autonomous vehicles.”
The position paper offers guidance to facilitate an effective auto insurance system, including:
- Ensure that any proposed legal and regulatory framework governing autonomous vehicles includes provisions specifically related to auto insurance, which should continue to be the primary compensation method for claimants.
- Encourage coordination among local, state and federal lawmakers and regulators, and seek input from all relevant constituents to ensure a consistent, rational regulatory system that addresses all potential issues.
- Require vehicle owners to purchase and maintain adequate insurance for their autonomous vehicles – including sufficient coverage for the inherently more expensive technology – whether they are personal, ride-hailing or company-owned vehicles.
- Develop a model state law relating to autonomous vehicle insurance that builds on the current state-based regulatory and oversight structure for auto insurance.
- Ensure representation of the insurance industry in policymaking and stakeholder forums.
“The existing auto insurance structure, both personal and commercial, is designed to resolve claims and provide fair compensation to crash victims quickly and effectively,” said Klein. “As long as we adapt policies and regulations to address the evolving risks, auto insurance as we know it today can – and will – meet society’s needs in an increasingly autonomous world.”
To download a copy of the position paper or to learn more about Travelers’ perspective on autonomous vehicles, please visit the Travelers Institute website.
About the Travelers Institute
The Travelers Institute, the public policy division of The Travelers Companies, Inc., engages in discussion and analysis of public policy topics of importance to the insurance marketplace and to the financial services industry more broadly. The Travelers Institute draws upon the industry expertise of Travelers’ senior management as well as the technical expertise of many of Travelers’ underwriters, risk managers and other experts to provide information, analysis and solutions to public policymakers and regulators. Travelers is a leading provider of property casualty insurance for auto, home and business. For more information, visit Travelers.com.
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 $32 billion in 2020. For more information, visit Travelers.com.
Chesleigh Fowler, 860.277.5102