Projection of On-Road Liability Losses for Autonomous Driving

Autonomous driving technology has made significant progress in the U.S. in recent years. Several companies have rolled out robotaxi and driverless delivery in many cities. Autonomous driving has created a unique and interesting challenge for actuaries to assess and estimate potential on-road liability exposure for insurance pricing and other purposes. Limited experience, lack of consistent regulations among states, and evolving technology are among the issues that actuaries have to deal with in assessing on-road liability exposures. This paper provides an overview of on-road liability exposure for Autonomous Vehicle operations on public roads and a framework to assist actuaries in their efforts to quantify potential liability losses in different markets.