Insurers that were quick to provide coverage for autonomous vehicle (AV) deployments are poised to reap significant benefits as the technology becomes increasingly prevalent, according to Rebecca Marsden, Vice President of Commercial Finance at AV software company Oxa.
As the industry moves from research and development to commercial scaling, early-adopter insurers are well-positioned to capitalize on the growing needs of AV companies like Oxa. Marsden noted that Oxa’s relationships with these forward-thinking insurers have endured as the company’s operations continue to expand.
“We’ve transitioned from R&D and pilot phases to scaling commercial commitments,” Marsden explained, highlighting Oxa’s progress in the field. The company’s technology is currently being utilized in various projects, including autonomous shuttle services on U.S. public roads operated by mobility firm Beep, as well as off-road initiatives such as baggage transfer at Heathrow Airport in collaboration with DHL and monitoring oil refinery operations for BP.
Marsden expressed confidence in the current insurance capacity, stating that it is “adequate for our needs” at present. She anticipates that as AV deployment becomes more widespread, the insurance capacity will continue to grow to meet the increasing demand. This growth will be driven by the accumulation of data, enabling insurers to become more comfortable with underwriting AV-related risks.
“We’re seeing a growing number of insurers showing interest in learning more about this space to stay ahead of future demands within the ecosystem,” Marsden added, indicating a positive trend towards greater insurance capacity and innovation in the AV sector.
As the autonomous vehicle landscape continues to evolve, The Insurer will be exploring the potential impact on the motor insurance market, including loss frequency and severity, product innovation, and the overall effect on motor insurers in the coming days.
