UK Edition
Aviva in talks with driverless car developers as it faces up to the future
Aviva is preparing for the arrival of driverless vehicles by trying to seal deals with manufacturers.
The emergence of driverless cars, which could be common within 15 years, is expected to rattle the motor insurance industry, with many concerned that insurance companies will no longer be needed.
Aviva’s international insurance chief, Maurice Tulloch, said the FTSE 100 business was talking to “a number” of companies involved in developing driverless cars, “as I’m sure a number of people are.”
A deal would either see drivers automatically get Aviva insurance when buying a driverless car or come in the shape of a collaboration with a start-up in the sector. The insurer confirmed that “if signed this would an Aviva first”.
At least one of the companies Aviva is talking to is based in Canada, with Mr Tulloch hinting that talks are in advanced stages.
Drivers are legally required to have motor insurance in the UK, but the emergence of driverless cars opens up a number of questions over the role of the insurer and who is to blame in the event of a collision.
Axa UK’s chief executive Amanda Blanc said last month that “babies born today may never have to take a driving test,” adding that the imminent use of driverless cars makes it “crucial” for insurers to look at the risks now.
As Britain’s largest insurer, and therefore one of the businesses most at threat, Aviva will want to get a foot into this industry early. While partnering up with a driverless car company will not lead to it having its own brand of cars on the roads, it will give it access to new customers and the developments shaping the industry.
There is concern traditional insurers could be pushed out of the market if they fall behind the trend. The chief executive of US automaker Tesla Elon Musk has already said his firm would in-source insurance if needed to.
Rival insurer Direct Line is meanwhile developing a trial of self-driving technology with FiveAI, a Cambridge-based artificial intelligence firm, the University of Oxford, Transport for London and the Transport Research Laboratory.
The Department for Transport is already considering a two-in-one style product for the new cars, to cover both a motorist when they are driving and a car when it is in driver-less mode, which is likely to make manufacturers liable if their cars spin out of control in the latter case.