Canada has taken another step toward becoming a driverless society, but experts believe this will have no bearing on the need for auto brokers in the future.
The Canadian Automated Vehicles Centre of Excellence (CAVCOE) recently announced that it has partnered with Windmill Developments to conduct a feasibility study to test an automated shuttle bus route between Ottawa, Ontario and Gatineau, Quebec.
CAVCOE’s executive director expressed hope that this project “will give Canada and many Canadian stakeholders an opportunity to learn first-hand the details of deploying and operating automated vehicles.”
Although this represents Canada inching one step closer to a society of autonomous vehicles, many insurance leaders are not distressed over the possibility of an uncertain broker future.
“Although accident rates will theoretically fall, new risks will come with autonomous vehicles,”
Domenico Savarese, group head of proposition development and telematics,
Zurich Insurance, told
Reuters. “What should be done in the case of a faulty software algorithm? Should manufacturers be required to monitor vehicles post-sale in the case of a malfunction or a hacker attack?”
Not only will brokers need to protect against manufacturers’ risks, but it’s likely that they will continue playing a role in safeguarding consumers against their own liability as well.
“Could a manufacturer become liable if a distracted driver causes an accident while relying on autopilot? It’s too early to tell,” added Savarese.
Canadian brokers echo Saverese’s optimism, arguing that Canada’s litigious nature will ensure a robust future for brokers, even if cars become universally autonomous.
“As we have new players involved with driverless cars, the owner still has to protect oneself with insurance,” said Paul Armstrong, partner, Paul C. Armstrong Insurance. “Telematics will play a greater role to determine fault. Costs will increase in litigation alone to determine negligence.”
Armstrong just hopes that all parties fully evaluate whether they are prepared for driverless cars before demanding their deployment across Canada.
“New ventures have new problems and costs,” he said. “Driverless cars are expected by a portion of our society, but like most services or products, are we prepared to pay?”
