Insurance Products for Automated Driving Vehicles
Development of Automated Driving Insurance (Tailor-made for Pilot Tests) Services
Automated driving is expected to solve social issues, including reducing traffic accidents and the impact on the environment. Many pilot tests have been conducted jointly by industry, government, and academia to examine both technical development and social acceptability.
Using the long-accumulated insurance design know-how, Sompo Japan has developed and now offers an automated driving insurance (tailor-made for pilot tests) that covers a wide range of risks during automated driving pilot tests.
The product incorporates automated driving insurance that comprehensively compensates for various risks relating to automated driving, risk consulting by Sompo Risk Management, and a dedicated service that supports pleasant automated driving by analyzing driving data using the latest IoT technologies.
As an example, vehicle developers who provide automated driving technology may be obligated to compensate for damages in the event of a system malfunction or other problem. However, not only does it take time to identify the cause of the malfunction, but developers will be likely to hesitate to promote such development if they have to bear indemnity risks.
To ensure that automated driving technology can be developed without having to worry about such issues, Sompo Japan now offers a new Additional Rider for Insured Parties Such as Automated Vehicle Developers, which eliminates the need to discuss the division of fault among vehicle developers, and does not seek compensation from developers insured under the rider. Through these initiatives, the company aims to solve issues faced by businesses that has adopted automated driving.
Launch of New Protection for Automated Driving Vehicles
The automated driving technology currently in practical use is a driving support technology that assumes a human driver is driving the vehicle, and that the driver assumes liability in principle for accidents. Because of this, the likelihood of a human driver not being liable for compensation for damage under the law is low at present, and in the majority of cases, it is possible to provide insurance payments using current bodily injury liability insurance and property damage liability insurance. However, due to diversified risks resulting from the high pace of recent technological developments and increase in cyber-attacks, Sompo Japan anticipates cases in which it is unclear whether a human driver is liable for damages and cases that will take time to settle.
For such cases they have newly added an special endorsement of the injured (provided for all customers) that pays insurance payments even when there is no liability for compensation on the part of the human driver, so as to continue to provide peace of mind to customers who use automobiles fitted with automated driving technology* and connected-cars, and ensure prompt injured party relief and early amicable accident settlement.
They have revised their no-fault accident provision (provided for all customers of vehicle insurance) to ensure there is no impact on customers’ ongoing automobile insurance policy rating as a result of accidents due to system defects or unauthorized access by a third party in which there is no negligence on the part of the customer.
- Vehicles in which the system simultaneously carries out multiple operations relating to the vehicle’s accelerator, brakes, and steering wheel that have already been introduced onto the market by automobile manufacturers.
Business Tie-up and Capital Tie-up with Tier IV to Jointly Develop Level IV Discovery
On February 15, 2019, Sompo Japan signed a business partnership agreement with Tier IV, a company that develops automated driving systems, and Aisan Technology, a company with high precision 3D mapping and drive simulation technologies.
The introduction of automated driving services requires a long preparation period and high costs, and involves many issues including technology development, the accumulation of expertise, and risk analysis.
By combining our big data with the expertise relating to the latest automated driving technologies accumulated by our two partner companies, we will work together to develop Level IV Discovery, an insurtech solution to systematic, safe, and secure pilot testing for local governments and transportation operators who are considering introducing automated driving services.
In December 2019, Sompo Japan opened a secretariat to organize a Level IV Discovery Symposium in Aichi Prefecture in February 2020 and to propose solutions to local governments throughout Japan.
In July 2019, Sompo Japan signed a capital tie-up agreement with Tier IV, a company with advanced automated driving technology. In August 2020, it became an affiliate of SOMPO Holdings.
To date, Sompo Japan has been researching the role it should play as a P&C insurance company to ensure that automated driving technology, which is expected to solve social issues such as a lack of means of transportation and driver shortages in underpopulated areas, is introduced into society in a safe and secure manner. By entering into this capital tie-up agreement and making Tier IV an affiliate company, Sompo Japan intends to accelerate its research and to develop new insurance products and services that make full use of technology, thereby contributing to the realization of a safe and secure automated driving systems in society.
