Swiss Re & Baidu partner on autonomous driving insurance, Mike Daly

Global reinsurance giant Swiss Re and Chinese tech giant Baidu have partnered to advance insurance and risk management for autonomous driving and autonomous vehicles.

Initially, the partnership is focusing on the launch of autonomous valet parking insurance, the industry’s first ever insurance solution for Apollo Valet Parking (AVP), which is an automated valet parking product designed by Baidu Apollo.

Next, the partnership will look to focus on risk management research and insurance innovation for autonomous driving computing platforms, intelligent cockpits, robotaxi (driverless taxis) and other automated driving products.

Part of the evolution from today's internal combustion engine (ICE) powered vehicles and early electric vehicles (EVs) to the fully autonomous vehicles (AVs) .

Signifies changes for insurers, auto manufacturers and the repair networks taking place and the need to plan ahead.

Even with the EVs on the road today there is uncertainty.

"EVs are an excellent alternative to combustion-engine vehicles. Not only do they offer zero emissions driving at the point of use, but also fewer moving parts under the hood means less can go wrong.

Of course, sometimes it does, and that’s why we have insurance. Vehicle insurance is almost unique in the insurance world because it’s a legal requirement, and accounts for a significant part of the total cost of ownership (TCO)—typically between 10% and 12% of the TCO of an ICE vehicle. Insurance premiums are based on complex algorithms and decades of experience. New technologies, however, mean new risks, which in turn can mean higher premiums. When it comes to EVs, the insurance industry has relatively little experience—and this underlines why we need to see insurance as a key stakeholder in the acceleration of electrification."

See EVs Need An Eco-System of Service, Recovery and Repair

For insurers to promote effectively new technology, they need understanding and insight to correctly match risks to insurance premiums, arrange vehicle repairs, and crucially, ensure the safety of repair technicians. The customer? They just want their vehicle back on the road safely and quickly.

The technology partners like LexisNexis, Mitchell, Tractable, Solera are key to that integrated with digital claims platforms.