Insurance Europe: Compulsory insurance: when it works and when it doesn’t
08 November 2017
Insurance Europe has published an Insight Briefing on why EU-wide compulsory insurance schemes only work in very specific circumstances. This is because there needs to be sufficient underwriting information, as well as enough similarity in the risks being covered and enough insurance capacity in the market.
The Briefing explains why inappropriate compulsory schemes are very likely to be counterproductive and actually make life more difficult for individuals, businesses and insurers.
The Briefing demonstrates that compulsory liability insurance for robots and artificial intelligence (AI) would not work.
This is due to:
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a lack of data on the risks,
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not enough similarity in the risks presented by different types of robots and AI, and
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because the insurance market in this area is still developing.
When new risks arise, insurers should usually be given the time and environment they need to develop appropriate and affordable policies. Compulsory schemes should only be considered at EU level in very specific circumstances.
Insight briefing
© InsuranceEurope
