Morning Briefing: Tesla’s Musk says auto insurance still vital for driverless cars

Morning Briefing: Tesla’s Musk says auto insurance still vital for driverless cars

Morning Briefing: Tesla’s Musk says auto insurance still vital for driverless cars Tesla’s Musk says auto insurance still vital for driverless cars
One of the major players in the driverless cars space says that the expectation that auto insurance would be largely replaced by product liability cover is wrong.

There has been speculation that the manufacturers of the autonomous vehicles would be wholly responsible for insuring their products on the basis that it would be their software, not owners, that would ultimately be in control of the vehicles and liable in the event of a crash.

Some manufacturers including Volvo have said that they would assume full responsibility. However, at an event Wednesday Tesla CEO Elon Musk told reporters that he considered that his company would only be responsible if there was a design fault, otherwise “I think that would be up to the individual's insurance.”

Musk likened the issue to manufacturers of elevators, highlighting that they are not responsible for every accident involving their products.

One of Tesla’s vehicles was involved in a fatal crash earlier this year and an investigation by the NHTSA is still ongoing.
Insurance commissioners call for consistency on cyber
There needs to be national consistency on regarding data breach laws and regulations, the National Association of Insurance Commissioners says.

"State regulators are committed to developing tools to ensure effective regulation to protect consumers because we know the cyber risk landscape is changing quickly," said John M. Huff, NAIC President and Missouri Insurance Director.

The association is developing a state insurance data model law with the aim of establishing standards for investigation data breaches. It wants to ensure that there are statutory regulations for reporting incidents to regulators and consumers.

"It is essential consumers have confidence in how regulators and insurers cooperate and respond to cybersecurity breaches," said Adam Hamm, chair of the Cybersecurity (EX) Task Force and North Dakota Insurance Commissioner.
Most business owners invest in employee benefits says Manulife
More than 80 per cent of business owners invest in health and wellbeing benefits for employees within a year of opening according to a new poll by Manulife.

The insurer’s survey of more than 1,000 Canadian employers found that millennial business owners are twice as likely to offer wellness programs as part of their group benefits offering than baby boomers (45 per cent vs. 22 per cent); there is a similar disparity for those setting up pension plans.

“Our research shows a connection between the investment in the health and wealth of employees and their level of engagement and productivity,” said Donna Carbell, Senior Vice President, Group Benefits, Manulife.

“Millennials understand what attracts and retains millennials and they are definitely going to scoop up the best talent by implementing benefits programs as soon as possible.”

Manulife’s research shows that a quarter of small business owners in Canada are millennials and they are more likely than older owners to seek advice from professionals on how to run their business.