Insurers have to tackle the uncertainties of autonomous vehicles

THE global market for driverless cars is expected to reach US$42 billion by 2025 , with more than 30 companies around the world already known to have invested heavily in the necessary R&D. Singapore, as part of its Smart Nation journey, is now joining the movement and making headway in this space.

Driverless vehicle trials are already taking place at one-north, Nanyang Technological University, Gardens by the Bay and Chinese Garden. SMRT has entered into a partnership with 2getthere while Tesla, maker of the world's only fully self-driving cars, is accepting local preorders of their upcoming model slated for production later this year.

But as the future of driverless vehicles begins to become a reality here, important questions are also raised, particularly around safety. How will liability be determined in case of accidents? And, subsequently, how will these vehicles be insured? Providing clarity around this first requires understanding of how non-autonomous vehicles are currently insured.