AUTONOMOUSVEHICLES:DEVELOPMENTANDTHEPOTENTIALIMPACTUPON

REGULATIONANDLICENSING

Speaker:RoryBarnable

BarnableLawP.C.

KeyConsiderationsHowcouldtheintroductionofautonomousvehicles

impactregulationsandinsurancecoverage?

This presentation will address the potential changesthat autonomous vehicles will necessitate for currenttransportation liability regimes, principally focusing onautomotive and marine transport.

We will discuss the legislative and insurance regimesvarious jurisdictions are implementing for autonomousvehicles, drawing parallels from other methods of riskallocation, and forecast potential changes that mayaccompany the increasing prevalence of thistechnology.

Aboutme

WhyAutonomous?

AutonomousVehiclesRecap

• Newformofmobility• Disruptivetechnology• Fallingaccidentfrequency• Personalandcommercialautopolicies

accountforroughly43percentofallwrittenpropertyandcasualtypremiums.

AVAdvances

• InInsurance:• Culturalshiftinnotionsoftransportation• Migratingformsofinsurancecoverage• Ondemandinsurance

CommentsonAV• Insuranceindustryexecutives:

• “Itcouldbeareinsurancearrangement, itcouldbeaquotasharearrangementoritcouldbeastrictinsurancearrangementlikewehavetodayandIthinkthat’sgoingtodependoneachcompany’sbalancesheetneedsandtheirefficientuseofcapital,”…“Ithinkonthepersonallinesside,youaregoingtoseeawholeslewofdifferentareas.Youaregoingtoseeregularpersonallinespolicieslikeweseetoday,becausetherearestillconsumerswhoaregoingtowanttodrivetheirownvehicle.”• KarimHirji, seniorvicepresidentofinternationalandventures

at IntactFinancial

CommentsonAV

• Insuranceindustryexecutives:• “…weexpectittomoveawayfrominsuring

millionsofindividualstopotentiallyinsuringahandfuloftechnologyprovidersorahandfulof(originalequipmentmanufacturer)providersandmanufacturers,andsotheentirelandscapeischanging.”• JasonStorah,executivevicepresidentforbroker

distributionatAvivaCanadaInc.

CommentsonAV• Autoindustry:

• “Rightnow,weareinanareawherewearenotsurewhichwaywearegoingtogo,becausetheautonomoustechnologyiscreatedbyusbuttherearealsocomponentssuppliedbyothercompaniesandthenweareaskingaboutsharedliabilitywithsuppliers”• AlifyaCurtin,generalcounselforCar2goNorthAmerica(whichisownedbyDaimler)

• “Theregulatoryframeworkineveryjurisdictionwasneverwrittenasavehicledrivingdowntheroad…It’salwaysaboutthedriverbehaviour,soatthispointwewantthedriverintheseat.”• LoganPurdy,manageroftheroadsafetypolicyofficefortheMinistryofTransportationof

Ontario

ConsiderationsfromAVButnotsofast• considerthelevelofculturalshiftnecessary

torelinquishwhatmostNorthAmerican’sconsideranabsoluteright.

• Considertoothatitcouldtake2decadesormoretoreplacetheexistingfleetofvehiclesontheroad…

Uncertainty=impactsregulatorydevelopment

RegulatingAV• NorthAmericanisinvolved

• IntheUSFederallyandattheStatelevel• Newbillssuggestingspendingincreases• NHTSApolicystatements&industryinquiries

• InCanada,Federallyandprovincially• Arewekeepingup?• Anecdotally,reportsandcriticismsuggestsnot

RegulatingAV• StatebyStates

• Variouslevelsofadoption• Planstostudy• Regulationoftesting

• InclusionbyOmission

IndividualStateInvolvement

RegulatingAV• Themes

• LevelofHumanparticipation• InVehicle

• Driverresponsibility• Manufacturer/Supplierresponsibility• Conversionresponsibility• PrivacyandDisclosure• Permittingtestingtoposttestingdeployment

ProductLiability• PresentRegime

• Modesoffailure• Shiftofdriverresponsibilitytomanufacturer/

Supplierresponsibility• Determiningfault/causation• PrivacyandDisclosure• ImportanceofBIGdata…

FurthercommentsonAV• Insuranceindustry:• “Wedon’tseeliabilitygettingmore

complicatedinadriverlessfuture,…Currently,weseenoneedforactiononthesideofinsuranceandliabilitylaw,”• JacobFuest,HeadoftheAutomotiveInnovationCenterat

Allianz

• Existinglawsinamajorityofcountrieswouldwellbeabletohandleliabilityevenincomplexcrashscenarios.

ProductLiability• PresentRegime

• Modesoffailure• Shiftofdriverresponsibilitytomanufacturer/

Supplierresponsibility• Determiningfault/causation• PrivacyandDisclosure• ImportanceofBIGdata…

FurthercommentsonAV• Whatwillnotchangeisthecertainty,

thatwithanaccidentsomebodywillbeaccountable• Humandriverinthetort/negligence

scenario,manufacturerintheproductliabilitycontext.

• Overarchingdoctrineofvictimprotectiondemandresponse

MarineConsiderations

• TechnologicalUnderpinnings• PresentAutomationUses• Futureforcommercialcarriageofgoods

andpassengers?

MarineConsiderations

• BenefitsofAutonomousOperation:• Decreasedmanpower• Lesssupportinfrastructure• Efficiencygains• ReductioninError(80%isHumanError)• Scale(~$400Bindustry,90%ofworldtrade)

MarineConsiderations

• PresentAdvances:• RollsRoyce• EuropeanUnion• UK

• Opposition• Scale(~$400Bindustry,90%ofworldtrade)

MarineConsiderations

• Opposition• Investmentnotjustifiedbycostsavings• Lackofinternationalsupportorinterest• Sloweruptake• Regulatoryhurdles

MarineConsiderations

• RegulatoryHurdles• Historicaldevelopmentofmarinelawand

convention• Internationalharmonizationdevelopedin

theageofsail• Regulationunderpinnedbyindividual

MarineConsiderations

• Outstandingissues• DopresentlawspermitAutonomousShips• Regulationunderpinnedby:

• Individuals(MasterandCrewroles)• Linkstogovernancethroughflagstates• Thestowawayandpirate

MarineConsiderations• Outstandingissues• Necessaryreconsiderationofvarious

conventions• theLawoftheSeaConvention;• InternationalConventionfortheSafetyofLifeat

Sea(SOLAS);• PortStateControlprograms;• InternationalConventiononStandardsofTraining,

CertificationandWatchkeeping forSeafarers,1978(STCW)

MarineConsiderations

• Outstandingissues• Similaritieswithaircraftindustry,

• Needforinternationalharmonization• Commonconcernsof:

• Expensive transportmeans• Carryingvaluablecargo• Riskofconsiderableharmtotheenvironmentandto

thirdparties.

Cyber• Dependenceonconnectivity• ImportanceofBIGDATA

Thankyou

RoryBarnableB.A.,LL.B.,LL.M.

BarnableLawP.C.161BaySt.,Suite2700Toronto,ONM5J2C1