Insurers have urged the National Transport Commission (NTC) to further consider the impact its preferred safety system for driverless vehicles will have on the industry.

IAG says the technology will increase risks to community safety, and the flow-on costs and impact on a number of industries have not been adequately considered in the NTC’s regulation impact statement.

The NTC is responsible for developing an end-to-end regulatory system for the commercial deployment of automated vehicles in Australia by 2020.

Its preferred option is a self-certification scheme, which makes the automated system liable for safety risks beyond those set out in law.

IAG says the self-certification framework is less rigorous than current regulation for vehicles, yet this is more complex technology with potentially unforeseeable risks.

It wants the costs and benefits examined by the Productivity Commission, including the impact on the insurance industry and personal injury and disability schemes.

QBE supports a self-certification scheme, but says the NTC needs to more thoroughly explore the impact on the insurance industry.

The reform options’ effects on the industry are noted only in passing, it says.

“It is anticipated that the cost and availability of insurance will be a major consideration for driverless vehicles and consumers, and the transition to automated vehicles is likely to require a fundamental rethink of traditional motor insurance products,” QBE says.

Road safety, the popularity of driverless systems and regulatory costs will all affect the insurance industry, according to QBE.

IAG and QBE say uncertainty around liability and regulations on data access will add to costs per claim.

Where there is uncertainty around risk, insurers need to determine that they have the capital to meet claims, often long into the future, IAG says.

QBE says it is critical for insurers that liability can be clearly defined and located.

And IAG says if the NTC insists on self-certification, such a system must include safety criteria for the driverless entity to meet state and local council road rules and make changes as necessary. It is also concerned there is no minimum standard for self-certification and no clearly outlined process for monitoring compliance with certification requirements.