Automated and Electronic Vehicles 2017-19

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Introduction

Cars, as we know them, have been the very foundation of our transport system for the last hundred years, but all of that is about to change.  With 1 million deaths worldwide every year as a result of road traffic accidents; will the dawn of driverless electric cars improve road safety and transform lives? 

There are many features built into our cars which we now take for granted; such as – parking sensors, cruise control, sensors on our windscreen wipers to detect rain and adaptive cruise control to name just a few.  These are all part of driver assist technologies and are the first small steps on the road to full autonomy.

The Automated and Electric Vehicles Bill 2017 has begun its consultative journey through the House of Commons towards the House of Lords and ultimately Royal Assent.

This is a complex Bill seeking to set the regulatory framework to enable the next generation of transport technology to be invented, designed, produced and used in the UK.  

The Government expects automated cars to begin appearing on our roads by the 2020’s.  As well as car manufacturers and the UK Government investing in autonomous vehicle design - Google has itself been investing $30m annually into the development of a driverless car.

Tesla CEO Elon Musk claims - We are just two years away from ‘sleeping in our cars’.  This comes as Volkswagen announces it will launch a driverless car in 2019, Audi to follow suit in 2020 and Ford and BMW close behind in 2021.

The Government View

At the Second Reading of the Bill in the House of Commons in October 17 there was a lively debate amongst the Ministers present.  They considered the benefits that the Bill could bring in reducing collisions, saving lives and transforming the lives of those currently unable to drive through disability and age – raising their quality of life and reducing the social care burden. 

In contrast, the cost and complexities brought about by the Bill cannot be ignored.  The need to redesign our highway infrastructure to enable automated and electric vehicles to operate freely, the lack of electric charging facilities, and how automated and manual vehicles will interact with each other are all dilemmas which need to be worked through.

Development in this space will undoubtedly bring opportunities creating high quality jobs and investment as well as benefits for the environment.  The Bill is comprehensive and it is refreshing to see insurance and data security / data protection issues included for consideration, debate and resolution.  Data logs in automated vehicles will be invaluable for determining liability – but how long should that data be kept? Whose data is it? Who should be allowed access?  All questions which require answers.

Insurance Implications

The ‘House’ has consulted widely with representatives from the automotive industry and insurance sector on the implications brought about by the Bill.  The Government has stated that it will create a new compulsory insurance framework which protects motorists when they are driving and when they have ‘legitimately’ handed over control to the vehicle itself. 

Consumers will be able to purchase insurance in the same way they do now and will continue to have quick and fair access to compensation in the event of an accident. Insurers will pay out to victims and where they can, insurers will then recover costs from the liable party using common and product law.

The Association of British Insurers has expressed concern that significant changes would have to be made to existing insurance practices to deal with routine road traffic accidents involving automated vehicles and these concerns have been included in the Governments impact assessment on the Bill.

It is currently estimated that 94% of all accidents are caused by human error.  Does this mean that in the future the computer (car) will always be right and the human (driver) will always be wrong?  Yet to be determined is how autonomous cars will make moral decisions e.g. whether to collide with a child or a bus filled with passengers? How will we build conscious thinking into a car’s computer, its DNA? 

David Williams – Chief Commercial Underwriter at AXA said:  “As well as making our roads safer, insurance premiums are based on the cost of claims and therefore we expect substantially reduced premiums to follow.  Automated vehicles, together with an effective framework, as the Government propose in the Bill, could deliver significant financial and safety benefits for road users”. 

What will the future look like?

Automated vehicles are those which have the capability of driving themselves without human oversight or intervention for all or part of a journey. Have we thought about what that will mean for the future delivery of our public services?

Will we be able to programme in ‘meals on wheels’ deliveries to self-driving vehicles?  How will our statutory duty to maintain the highway change?  With an ageing population placing pressure on local authorities – will automated vehicles reduce the burden on service provision for the elderly as they will be able to travel themselves to appointments, day care centres etc.?

Could cars run our errands for us? Will this be the demise of the taxi?  Will we be able to just text our cars and they travel to where we are and pick us up? 

Regardless of how far society embraces autonomy, we will need to place significant trust in that vehicle to keep us and others around us safe.  Judgement, speed and tactical decision making in the future, will be out of our hands.

Public sector clients should be preparing themselves for the changes. They should consider the risks and opportunities that will be brought about by the introduction of autonomy and how they can realise the benefits for their service users.

The Road Map to Automation

The National Highway Traffic Safety Administration and SAE (formerly the Society of Automotive Engineers) have set levels of autonomy from level 0 to level 5.  Please download the guidance note to view the levels.

To achieve level 5 autonomy, the vehicle will need to have cognitive capability to sense the world around itself and take decisions on what to do.  We raised some of these questions earlier and there is still a significant amount of work to be done before manufacturers can be confident that the autonomous vehicle will make the ‘right’ decision.

The vehicle itself will be controlled by laser, radar and satellite navigation rather than a human.  To support this, our existing city fabric will have to be transformed to accommodate these new machines.  For years we have been building up our world with a completely different vehicle in mind.  At this stage, there are probably more questions than answers, but that shouldn’t prevent public sector leaders from preparing early for the change that’s on its way.


How can we help you?

For more advice on how we can help lower the cost of your risk, please email UK.London.RMPartners.riskcontrol@rmpartners.co.uk

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