Risk-adequate motor underwriting of automated vehicles: a qualitative evaluation using German focus groups

The advent of automated vehicles is already taking place and will significantly disrupt the motor insurance industry. The shift from the human driver to the system as the driver cannot be reflected in the current insurance risk assessment. This call for an amendment of the insurance underwriting was discussed with German experts from both the primary insurance and reinsurance sector with their professional background on motor insurance. Based on the findings, we propose an alternative method to underwrite automated vehicles of level 4 & 5 using an enhanced telematics approach which considers new risk categories such as systems used and the transformed role of the driver as the general user of the automated vehicle.