Regulation and Liability in Motor

Insurance sector urges detail on liability in self-driving vehicle rollout

12 Aug 2025

The UK Department for Transport has launched a consultation on the Automated Passenger Services (APS) permitting scheme, part of the Automated Vehicles Act 2024, to guide the approval and oversight of autonomous taxi, private hire, and bus services. The scheme aims to enable commercial self-driving passenger operations without human safety drivers from spring 2026, ahead of full AV Act implementation in 2027. AXA Retail’s managing director Marco Distefano welcomed the move but stressed that detailed secondary legislation is essential to define liability, structure insurance, and ensure fair pricing. He noted that responsibility will vary depending on whether a human or the vehicle’s system is in control, with vehicle data being key to determining fault. The Association of British Insurers also supported the initiative, highlighting the importance of safety and data-sharing in the adoption of autonomous vehicles.

Motor Claims Handling Needs Improvement, Says FCA

8 Aug 2025

The FCA has found that recent rises in UK motor insurance premiums are mainly due to external cost pressures, such as higher vehicle, parts, labour, and credit hire costs, rather than insurer profits. However, it also identified poor claims handling practices in some firms, including slow processing, lack of oversight of outsourced services, high rejection rates for certain claims, and unsuitable cash settlements. Referral fees from credit hire and claims management companies were linked to delays and added costs. The regulator is addressing these issues directly and working with government and industry through the motor taskforce to help control premium increases. It is also investigating the premium finance market, with a final report due by the end of 2025.