London Market insurers will play a vital role in the development of new advanced air mobility technologies over the next few years, the International Underwriting Association has stated. The organisation called for a robust certification process that prioritises safety and access to data so that underwriters can effectively analyse risks and liabilities. Its comments were made in an official response to a public review of the law around autonomous flight being conducted by the Law Commission.
Aviation drones are already in widespread use, but their development is expected to accelerate with larger craft being used to deliver cargo and vertical take-off and landing vehicles carrying passengers for air taxi services.
Tom Hughes, Senior Underwriting and Claims Executive at the IUA, said: “The London Market has always provided a home for new, complex risks and very large exposures. Insures are already providing cover for new aircraft and have recognised an opportunity to support the testing and roll-out of new technologies.
“It is difficult to know how fast and how quickly the market will develop, but given the levels of investment being seen in the UK and globally it is difficult to believe that advanced air mobility will not be a significant part of our transport network in the future.”
In its response to the Law Commission the IUA pointed to the recent Automated Vehicles Act as providing a template for establishing liability, depending on whether a vehicle is being controlled by a human or autonomously. Similarly, recent debates about how insurers could access to data to determine liability in the event of an accident for driverless cars could also be applied to aviation.
The IUA also urged lawmakers to consider safety regulations around the use of batteries and cybersecurity systems as used by advanced air mobility technologies. Another risk to be addressed is an increasingly congested airspace and a potential impact on nuisance and privacy rights with new technologies likely to operate in much closer proximity to people that traditional aircraft.
Hughes added: “Focusing on safety is fundamental to ensure the integrity and longevity of the advanced air mobility market. There is a substantial risk that early accidents could deter insurers from engaging in the sector and risk denting public confidence in the technology.”
