Learn about the future of self-driving cars and the role of the insurance sector in spreading them

علاء الزهيري

Alaa Al-Zuhairi

Ayah Jaseen

During its publication this week, the Egyptian Insurance Federation discussed the definition of a self-driving car, which is a car capable of sensing the environment around it almost completely, through a set of cameras and sensors and Artificial intelligence applications, as it is able to move around without any intervention from the driver, and we return the experiences of the self-driving car industry to more than 50 years, and the bulletin indicated that the self-driving car operates with a mixture of 3 systems in a harmonious manner that makes it able to make the right decisions while driving, namely: (special sensors, the Internet, and software based on mathematical rules Algorithms).

She also referred to the advantages of self-driving cars, which are the reduction of human errors, high comfort and luxury, the reduction of traffic congestion, only reduce Carbon emissions
2021 The bulletin referred to the classification of cars according to the level of Self-driving cars are divided into levels that take numbers from zero to 5, where level 0 represents non-self-driving cars, while level 5 represents fully self-driving cars. Although self-driving cars are not exposed to the possibility of human error, they may require car insurance.

With regard to how the insurance premium for self-driving cars is calculated, the federation confirmed that, given Because self-driving cars do not need a driver, the technology and safety features used in the car can be considered to determine the policy premium.

The bulletin indicated that with regard to the factors that can be taken into account when determining the premium for the self-driving car policy, they are represented in the year of manufacture, model and model of the car, the type of insurance policy, specific additional coverages, the geographical area, and the declared value insured. (IDV)Insured Declared Value.

The reasons for insuring self-driving cars are the varying levels of automation, human errors and technical malfunctions, damage coverage / damages (damages and damages), and legal requirements

The bulletin also mentioned some topics related to self-driving car insurance such as (repair costs, car ownership, legal liability, underwriting).

The bulletin also answered questions about the impact of self-driving cars on the auto insurance industry? And how do insurance companies adapt to the upcoming changes? The bulletin indicated that it is difficult to ascertain the exact impact of self-driving vehicles on car insurance companies at the present time, but it is expected that the change will be gradual, and that there are three main areas in which insurance companies can work in the future. They are cyber security, product responsibility, and infrastructure insurance

The bulletin also referred to the experience of The Saudi insurance sector approved the first insurance product to cover self-driving vehicles in 2021

With regard to the role of the Egyptian Insurance Federation, the Egyptian Insurance Federation works through its specialized technical committees to keep abreast of developments and developments in the global markets, and accordingly, the General Committee for Car Insurance By completing the formulation of the conditions for securing electric cars, it has also begun to prepare the concept of the self-driving car insurance policy.
2021 Insurance companies must quickly adapt and respond by providing appropriate insurance coverage and products, and insurance companies must develop a whole new set of skills and expertise within the company to understand the complex details of each vehicle, and insurance solutions must be rethought with Liability shifts from driver to manufacturers The traditional approach to motor liability insurance needs to give way to more from product liability or mixed coverage. The question that still challenges conventional car coverage of self-driving cars is who is at fault in the event of a collision. If the vehicle is under the driver’s control, personal vehicle coverage will apply. But if standalone technology is used, the liability shifts to product liability coverage held by OEMs.