Insurance Sector Calls for Detailed Liability Framework in Self-Driving Vehicle Rollout

What's Happening?

The Department for Transport has initiated a consultation on the Automated Passenger Services (APS) permitting scheme, part of the Automated Vehicles (AV) Act 2024, to facilitate the commercial deployment of self-driving passenger transport in the UK. The consultation, open until September 28, 2025, aims to gather feedback on the approval, monitoring, and management of autonomous taxi, private hire, and bus services by local authorities. It also seeks input on accessibility requirements for disabled and older adults and the mechanisms for varying, suspending, or withdrawing operator permits. The APS scheme is designed to accelerate self-driving vehicle pilots by spring 2026, allowing commercial passenger services to operate without human safety drivers. The government anticipates that self-driving vehicles could create 38,000 jobs and support an industry worth £42 billion by 2035.

Why It's Important?

The introduction of self-driving vehicles is expected to significantly alter the transport risk landscape, necessitating new insurance frameworks. Insurers have welcomed the consultation but emphasize the need for detailed liability legislation to enable product development and fair pricing. Marco Distefano, managing director at AXA Retail, highlights the importance of robust legislation accompanying the adoption of self-driving technology. The AV Act is a step forward, but secondary legislation will define risk assessment, liability, and insurance structure. The insurance industry supports automated vehicles for their potential to improve road safety and revolutionize transport systems, but stresses the importance of data-sharing among stakeholders for successful adoption.

What's Next?

The consultation marks the third regulatory engagement on self-driving vehicles this year, following earlier consultations on safety principles and marketing of autonomous technology. Insurers are awaiting detailed legislation to fully consider how insurance for self-driving vehicles will work in practice. The government is committed to working with passengers and industry to ensure the technology is safe and accessible, stimulating innovation, creating jobs, and driving investment.