“SYSTEMIC RISK”: The Taxi Insurer warns of major liability and cybersecurity risks as insurance firms prepares for driverless UK ridehail trials
- Perry Richardson
- 5 minutes ago
- 2 min read
A leading taxi insurance specialist has warned that insurers could face major underwriting and liability challenges as the UK moves closer to allowing driverless taxi-style services on public roads.
The warning comes after the Government announced plans to begin piloting self-driving passenger services, including taxi and bus-style vehicles, under a new regulatory framework expected to launch later this year.
David Sweeney, head of taxi broking at The Taxi Insurer, said the move towards autonomous passenger transport raises complex questions for insurers around liability, pricing and claims handling.
Sweeney said: “As a number of companies are trialling driverless taxis in the UK this year, questions are understandably being asked about the insurance ramifications of any incident involving an autonomous vehicle.
Taxi insurance specialist says underwriters face difficult questions over evidence, exposure and responsibility in autonomous vehicle incidents
“The underwriting challenges are certainly significant, touching on systemic risk, cybersecurity vulnerabilities, pricing and exposure modelling, and liability and claims handling. There’s a danger that insurers could be asked to determine a variety of risks without the necessary evidence being fully available.”
The Government said its pilot scheme will allow companies to apply to operate small-scale autonomous passenger services ahead of wider legislation expected under the Automated Vehicles Act. Ministers believe the trials will help support innovation and improve transport accessibility while gathering operational data from real-world services.
For insurers operating in the taxi and private hire sector, however, autonomous technology introduces new commercial risks not normally associated with traditional motor policies. Questions remain over how fault could be determined following collisions involving software-controlled vehicles, particularly where responsibility may sit between operators, manufacturers and technology providers.
Cybersecurity is also expected to become a growing area of concern as connected autonomous vehicles rely heavily on digital systems, remote connectivity and vehicle software to operate safely.
The Government has said all services approved under the pilot programme will need to meet strict safety requirements before carrying passengers. Local authorities and transport bodies will also continue to play a role in approving services operating within their regions.
The introduction of driverless passenger services is being closely watched by insurers, taxi drivers and licensing authorities as the UK attempts to establish a commercial framework for autonomous transport.
