Lloyd’s to offer autonomous-car insurance

Lloyds of London is getting ready to offer insurance for autonomous cars. The 330-year-old insurance market is talking with OEMs about how to set up different policies. Tesla for its part is exploring its own insurance options. 

It is expected that autonomous vehicles – which promise to reduce accidents and fatalities almost to zero – will drastically reduce the need for conventional, driver-based car insurance. With the “inevitable” shift towards autonomous-vehicle insurance, the venerable institution (pictured: Lloyd’s Building in the City of London) aims to stay relevant in a fast-changing landscape. 

According to John Neal, CEO of Lloyd’s of London, autonomous driving will merely shift the need for car insurance, not end it: “Within five years, particularly in an urban environment, we will find a very different approach to the supply of a motor vehicle and the insurance that goes with it.”