Topic: Impacts of Introduction of Autonomous Vehicles to the CTP Insurance Premiums

DEFINITIONS

Automated driving system (ADS) means the hardware and software that are collectively capable of performing the entire dynamic driving task on a sustained basis. It is a type of driving automation system used in vehicles operating with conditional, high and full automation mode.

Automated driving system entity (ADSE) means the legal entity responsible for the ADS. This could be the manufacturer, registered operator of the vehicle or another entity (this term is not derived from the SAE International Standard J3016).

Partial Automation means a driving automation system may take control of steering, acceleration and braking in defined circumstances. It cannot undertake the entire dynamic driving task. The human driver must perform the remainder of the dynamic driving task, supervise the automated system and intervene if necessary to maintain the safe operation of the vehicle.

Conditional Automation means the ADS undertakes the entire dynamic driving task for sustained periods in defined circumstances. The human driver does not have to monitor the driving environment or the ADS but must be receptive to ADS requests to intervene and any system failures.

Dedicated Automated Vehicle means a vehicle that has no manual controls enabling it to be driven by a human driver. In this type of vehicle, the dynamic driving task is always performed by the ADS. An example is low speed driverless passenger shuttles such as EasyMile, being trialled in Darwin (this term is not derived from the SAE International Standard J3016).

Full Automation means all aspects of the dynamic driving task and monitoring of the driving environment are undertaken by the ADS. The ADS can operate on all roads at all times. No human driver is required.

Dynamic driving task means the operational and tactical functions required to operate a vehicle in on-road traffic (a more expansive definition is provided in the glossary).

Dynamic driving task fallback means the response by the fallback-ready user or an ADS to either perform the dynamic driving task or achieve a minimal risk condition after a dynamic driving task performance-relevant system failure or when the vehicle exits the operational design domain. In a vehicle with conditional automation the fallback-ready user performs the dynamic driving task fallback. In vehicles with high or full automation the ADS performs the dynamic driving task fallback.

Fallback-ready user means a human in a vehicle with conditional automation who is able to operate the vehicle and who is receptive to requests from the ADS to intervene and is receptive to evident dynamic driving task performance-relevant system failures. The fallback-ready user is expected to respond by taking control of the vehicle.  

SCENARIO

The National Transport Commission recently issued a consultation paper on legislative reforms necessary to support the use of automated vehicles on roads in Australia. Automated vehicles include the full spectrum of levels of automation from Partial Automation, through to Full Automation.

Some of the problems identified in their issues paper include:

  1. Current driving laws and offences assume a human driver
  2. An ADS is not a person and cannot be legally responsible for its actions
  3. Current law does not provide for a legal entity, which we describe as an automated driving system entity (ADSE), to be held responsible for the actions of the ADS
  4. Some legislative duties and obligations given to drivers could not be controlled by the ADSE if an ADS is the driver
  5. Safety duties may need to be carried out by someone else if the driver is an ADS
  6. ‘Control’ and ‘proper control’ of a vehicle are not defined if an ADS is driving
  7. There are no legal obligations on a human who may be required to take over the driving task (fallback-ready user) to ensure he or she is alert and ready to do so.
  8. Current compliance and enforcement measures may not be suitable to ensure the safe operation of an ADS.

The CTP Scheme in NSW is operated by five licensed insurers within the guidelines set by SIRA in accordance with the Motor Accident Injuries Act 2017.

In the Motor Accidents Injuries Act 2017

driver means a person driving a motor vehicle, and includes:

(a) a person riding and operating a motor cycle, and

(b) a person for the time being in charge of a motor vehicle.

TASK

Please prepare a briefing note to the Director of Premiums and Market outlining what you think might be the impact and also some of the challenges that need to be addressed from a CTP Premiums perspective? How might they be addressed?

Please consider and cover, but not be limited to, the following:

  • Redefining fault – challenges of determining fault and how will this impact determining risk when calculating premium
  • Lack of Historical data (e.g. claims history) used for determining premiums resulting to risk of unsound

The briefing note should be no longer than 2- 3 pages and can be based on the following format:

Issue

  • Outline the issue in one or two sentences and no more than three lines

Recommendations

  • Outline the action(s) you are seeking approval or for noting

Purpose

  • Why is the Director receiving the brief?
  • Dot point your reasoning and keep it short and succinct. If appropriate provide options with a clear recommended option and why

Background

  • This section should summarise the context
  • Note financial, risk, compliance and privacy implications (if relevant)

Type of service: Academic paper writing
Type of assignment: Research Paper
Subject: Finance
Pages / words: 2 / 550
Academic level: Master’s
Paper format: Harvard
Line spacing: Double
Language style: AU English

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