Insight: Britain's driverless car ambitions hit speed bump with insurers

Suncare Traders

21/04/2021 10:00

By Nick Carey, Paul Lienert and Tina Bellon
    LONDON, April 21 (Reuters) - Britain's goal to be a leader
in adopting self-driving cars could backfire unless automakers
and government regulators spell out the current limitations of
the technology, insurance companies warn.
    Insurers are key players in the shift to automated driving,
with some investing in a technology they believe will slash
accidents and deaths, and save them billions in payouts.
    But they are worried drivers might equate today's lower
levels of automation with fully self-driving vehicles,
potentially causing more accidents in the short term and
permanently damaging public confidence in the technology. 
    "What you describe things as is incredibly important, so
people don't use them inappropriately," said David Williams,
managing director of underwriting at AXA Insurance, whose parent
AXA SA  AXAF.PA  made 17 billion euros in revenues from property
and casualty insurance, including motor insurance, in 2020. 
    "I genuinely believe the world will be a safer place with
autonomous vehicles and I really don't want that derailed."
    In what would be a world first, Britain is considering
regulating the use of Automated Lane Keeping Systems (ALKS) on
its roads, possibly even on motorways at speeds of up to 70
miles (113 km) per hour. It is also deciding whether to describe
them to the general public as "automated" systems. 
    It is that one word - automated - that has stirred
controversy and put the country at the centre of a global debate
about self-driving terminology at a sensitive moment in its
evolution. 
    The technology is evolving rapidly and there is no consensus
on how to deploy it or what to call some features. Regulations
in the Americas, Europe and Asia lag far behind technical
developments and issues over accident liability are unresolved.
    ALKS use sensors and software to keep cars within a lane,
accelerating and braking without driver input. They are "Level
3" technology on the auto industry's five point scale towards
fully autonomous "Level 5" driving - meaning they can operate
under specific conditions, but require driver intervention.
    However, some experts say ALKS should be called
"assisted-driving technology" to avoid potentially misleading
consumers into believing they can let their attention wander at
the wheel. 
    The dangers of drivers apparently misunderstanding the
limits of technology has already become an issue in the United
States, where regulators have been looking into about 20 crashes
involving Tesla's  TSLA.O  driver assistance tools, such as its
"Autopilot" system - a "Level 2" technology that requires the
driver's constant attention.  urn:newsml:reuters.com:*:nL1N2LG2ON  urn:newsml:reuters.com:*:nL1N2MB0H5
    Britain's Thatcham Research said it had tested cars with the
technologies underpinning ALKS and found they cannot swerve out
of lane to avoid obstacles, see pedestrians emerging from cars
at roadside, or read road signs. The car can alert the driver to
resume control, but with a potentially fatal lag at high speeds.
    "If this technology was really automated and could do what
you or I could do, insurers would welcome it," said Matthew
Avery, Thatcham's research director. 
    "But this will lead to confusion, it's going to lead to
unnecessary crashes, and potentially injuries or fatalities" if
ALKS are not marketed accurately, he added. 
    Britain's transport ministry said its primary concern was
public safety and it hadn't decided to permit the use of ALKS at
high speeds or whether to call the technology "automated." Its
decisions are expected later this year.
        
    'PROBLEM CHILD'
    The World Health Organization estimates road accidents
globally kill around 1.35 million people a year. 
    With human error estimated to cause around 90% of accidents,
that has attracted considerable interest in automated driving
technologies from insurers. 
    AXA, for instance, has used UK research projects to gather
data to create insurance products for autonomous vehicles and
owns a stake in self-driving software startup Oxbotica, which
also has funding from Chinese tech giant Tencent.  urn:newsml:reuters.com:*:nL1N2JG0LV
    There is potentially a big economic boost too from embracing
the new technology. 
    Britain's transport ministry forecasts by 2035 around 40% of
new UK cars could have self-driving capabilities, creating up to
38,000 new skilled jobs.
    "The UK's adoption of ALKS ... is essential for Britain to
remain a world leader in vehicle technology while ensuring our
roads remain amongst the safest on the planet," Mike Hawes, CEO
of UK car industry lobby group the Society of Motor
Manufacturers and Traders Limited, said, noting the United
Nations has approved ALKS in slow moving motorway traffic under
37 miles per hour (60 kph).  
    Daimler's  DAIGn.DE  Mercedes-Benz has been a pioneer of
self-driving technology and is seeking global regulatory
approval for its "Level 3" Drive Pilot system.  urn:newsml:reuters.com:*:nL8N2HE7BK
    In an email, Daimler called the system "conditional
automated driving" 
    "This is a paradigm change, because the vehicle takes
control," Daimler said. "The driver can turn away from what is
happening on the road" to surf the internet, or enjoy "a
relaxing seat massage."
    AXA's Williams attended a presentation of Drive Pilot to the
Association of British Insurers last year. 
    "It is absolutely amazing, but it is driver assistance," he
said, and not full automation. 
    Neil Ingram, insurer Direct Line's  DLGD.L  head of motor
product management, said it was vital "Level 3" technologies
were described clearly and accurately. 
    "We've known for years the path to full automation was a
tricky one and Level 3 has always been the problem child," he
said. "If the government decides to designate ALKS systems as
automated then that makes it very, very real."
    With proper consumer education, ALKS "could help in slow
moving traffic", said Anthony Smith, CEO of independent UK
consumer watchdog Transport Focus. 
    "But the word 'automated' needs careful testing on a few
focus groups and we need a better name," he said. 
    Some in the car industry favour a cautious approach.  
    Glen De Vos, chief technology officer at Aptiv  APTV.N , a
supplier developing self-driving technology, said automakers
should be "very sensitive" when describing their systems'
capabilities "because what we don't want to do is oversell."
    Even marketed properly, he said some drivers would abuse the
technology. So Aptiv advocates using cameras and sensors inside
vehicles to keep drivers engaged.   
    "If the driver's behaviour doesn't change, you have to lock
them out of the system," De Vos said.
    ($1 = 0.7209 pounds)

 (Reporting by Nick Carey. Editing by Mark Potter)
 ((nick.carey@thomsonreuters.com; +44 7385 414 954;))