QBE is providing compulsory third party (CTP) cover for the first open-traffic driverless vehicle trial in Australia.

The first phase of the pilot began last week at the University of New England campus in Armidale, NSW.

QBE says the trial will provide insights on the rapidly evolving technology, which will require the industry to reconsider the way insurance is provided.

“Statistics show that between 90% and 95% of vehicle accidents today are largely caused by human error,” QBE Australia GM CTP Colleen Chapman said.

“As such, QBE seeks to understand how vehicle autonomy can create safer roads and reduce injuries to counteract the high economic and devastating social impact costs of road trauma.

“With a view to reducing road-related deaths and injuries, we hope this trial will contribute to efforts to quantify improved road safety outcomes, including understanding how the availability of data can inform on traffic incidents.

“Crucially, this trial will also provide information about the new risk exposures presented by driverless vehicles, informing the development of future insurance products.”

A fully automated shuttle will operate on a five-kilometre route at the campus for four months during the first phase of the Armidale Regional Driverless Initiative.

The trial will run for 12 months over three stages.